As readers of this blog know, the only constant in the accounting technology space is change itself. With that in mind, I wanted to let you know about some recent acquisition announcements in the accounting space.
SAP to Acquire Concur- Enterprise software giant SAP announced after the market closed last Friday that they have an agreement in principle to acquire the outstanding shares of Bellevue, Washington based Concur Technologies. Concur provides tools for managing the expense reimbursement process in small companies (with a SaaS offering) and with an on-premises expense management toolkit for enterprises. (Source: @WSJ)
Sage to Acquire PayChoice - Small and mid-sized business management company Sage has announced an agreement to purchase PayChoice, a provider of payroll and HR services for small businesses over a software-as-a-service (SaaS) platform. Sage’s press release described PayChoice as follows:
Founded in 1990, PayChoice is headquartered in New Jersey with 260 employees and 16 offices across the US. PayChoice provides full-service and self-service payroll and HR services to more than 100,000 SMBs in the US, through a direct sales force and third-party licensee channel. PayChoice's revenue for FY13 was US$38.9m.
PayChoice has developed a next generation, cloud-based payroll and reporting platform called ENCORE. The platform, which was launched in September 2011, encompasses both mobile and web-based payroll applications, operating from a single codebase for both its direct and licensee clients. ENCORE supports the needs of businesses with self-service solutions through to more complex full-service solutions on the same platform, supporting the needs of SMBs as they grow.
The release also disclosed that consideration for the purchase was approximately $157.8M (converted from GPB at a rate of 1:$1.628)
From the release:
“PayChoice is an excellent business, with a strong management team, attractive cloud platform and a proven business model based on supporting the needs of small and medium-sized businesses and licensees,” said Pascal Houillon, president and CEO, Sage North America. “We are excited about the growth opportunity that the combination of Sage and PayChoice creates in this market and delighted to welcome the management and staff of PayChoice to Sage.”
Payroll and compliance with constantly changing employer regulations are two consistent challenges for SMBs. This acquisition will enable Sage to provide intuitive payroll solutions as well as integrated ancillary services such as tax filing and direct deposit as part of the company’s core offerings, making it easier for small and medium-sized businesses to consolidate and review business data, manage relationships, and simplify day-to-day operations.
Infor Completes Acquisition of SalesLogix – Infor announced earlier this month that they have completed their acquisition of the assets of the SalesLogix CRM application from Swiftpage. Readers may recall that Sage spun off both SalesLogix and Act! to Swiftpage in early 2013. as part of a series of deals which included spinning off Sage Non-Profit Solutions (now called Abila) to a private equity group run by KKR-Accel.
Consideration was not disclosed by either party, but Infor did mention that SalesLogix is used by 70,000 customers at 1,700 organizations who use SalesLogix. 300 of these companies use both SalesLogix as well as one of Infor’s solutions. Infor plans to incorporate the product into Infor CloudSuite, a set of cloud applications which run on Amazon to meet the needs of specialized industries.