Acquisition of German payroll business from Exact transforms Sage’s position in the German payroll market
Download the full PDF of the press release
The Sage Group plc ("Sage") today announces an agreement to acquire Exact Software Deutschland GmbH (“Exact Lohn”), the German payroll business of Exact Holding N.V., for a cash consideration of €16.25m (£12.87m). The acquisition will be made by Sage’s German subsidiary, Sage Software GmbH.
This is a transformative acquisition for Sage’s payroll business in Germany. It increases payroll revenue to approximately €30m and establishes Sage as one of the two leading players in this segment in Germany.
Exact Lohn provides payroll solutions ranging from payroll software products to full business process outsourcing (“BPO”) solutions. In 2013, Exact Lohn reported revenue of €10.5 million. It serves approximately 3,400 small to medium-sized businesses in Germany, with strong representation in the manufacturing, services and construction sectors. Following the acquisition, Exact Lohn will be integrated into Sage’s German business.
Alvaro Ramirez, Chief Executive Officer of Sage Europe said: “We are excited about the growth opportunity that the combination of Sage and Exact Lohn creates for our German business. Exact Lohn strengthens our existing payroll and HCM capability, creating a market leading position in Germany. The acquisition significantly increases our payroll customer base and provides opportunity for us to drive growth through our enlarged customer base.”
The transaction requires approval from the German Federal Cartel Office (Bundeskartellamt) and is expected to close in the third quarter of 2014.
*All financial information is translated at £1 = Euro 1.2627.
The Sage Group plc +44(0) 191 294 3068
Murdo Montgomery, Investor Relations
Tulchan Communications +44(0) 20 7353 4200
About The Sage Group plc
We provide small and medium sized organisations with a range of easy-to-use, secure and efficient business management software and services - from accounting and payroll, to enterprise resource planning, customer relationship management and payments. Our customers receive continuous advice and support through our global network of local experts to help them solve their business problems, giving them the confidence to achieve their business ambitions. Formed in 1981, Sage was floated on the London Stock Exchange in 1989 and entered the FTSE 100 in 1999. Sage has over 6 million customers and more than 12,700 employees in 24 countries covering the UK & Ireland, mainland Europe, North America, South Africa, Australia, Asia and Brazil. For further information please visit www.sage.com