Softline acquires a leading Transaction Services Provider, Netcash
Softline (Pty) Ltd ("Softline"), part of The Sage Group plc ("Sage"), a leading provider of accounting, payroll, CRM and ERP business management software and services to small and medium sized companies ("SMEs"), has announced the acquisition of 100% of Netcash (Pty) Ltd ("Netcash"). Netcash specialises in providing secure, online transaction processing services for SMEs in South Africa.
Netcash, which was established in 2002, provides transaction processing services to its 6,000 customers in three primary areas: electronic funds transfer ("EFT's") payments, debit order collections and credit card transaction processing. The Netcash system is internet based, affording SMEs a service in real-time, on a location-independent basis.
According to local research firm, World Wide Worx, the internet user base in South Africa grew by 15% in 2009, from 4.6-million users to 5.3-million users, and is expected to grow at a similar rate in 2010, reaching the 6-million mark by the end of 2010. SMEs are increasingly using internet based services to manage their businesses and there is a growing demand for cost effective and secure transaction processing services, coupled with high levels of support.
The potential synergies between the businesses of Softline and Netcash are readily apparent; both businesses predominantly serve SMEs, albeit in different areas of business process and the addition of Netcash's transaction services to Softline's family of products such as Pastel Accounting, Pastel Payroll and VIP Payroll will afford existing and future Softline customers a unique breadth of service offering, under a single banner.
The acquisition of Netcash is an important step in fulfilling Softline's vision to provide a business solution to SMEs which enables them to transact in EFT's, debit order and credit card transactions directly from their back-office accounting and payroll applications.
Ivan Epstein, Chief Executive Officer of Softline, commented:
"The Netcash acquisition gives Softline the capability to integrate a secure payment system with our accounting and payroll software, being Pastel Accounting, Pastel Payroll, VIP Payroll and Accpac. With SagePay in the UK, Sage Payment Solutions in the US and now Netcash in South Africa, Sage continues its strategy to expand into payment and transaction processing , to broaden the range of services it can offer to its SME customers."
About Softline
Softline is a leading provider of accounting, payroll, CRM and ERP software solutions to small, medium and large sized companies. Founded in 1988 by Ivan Epstein, Alan Osrin and Steven Cohen, Softline was established during the formative years of the software industry and listed on the JSE Securities Exchange South Africa in February 1997. Softline expanded to establish a strong position within its area of focus in South Africa and Australia. Focused on the development of accounting, payroll, CRM and ERP software solutions, Softline has a 20 year track record as a market leader. The group has a broad range of products offering users a variety of software solutions to run their businesses efficiently. Softline's leading brands include Softline Accpac, Softline Pastel (Accounting and Payroll) and Softline VIP. The combination of the group's product offerings provide Softline customers with comprehensive, well-branded accounting, payroll, CRM and ERP software solutions. In November 2003, Softline was acquired by the Sage Group plc, a FTSE 100 company. The software group includes market-leading businesses throughout the United Kingdom, Europe, North America, South Africa and Australia, supplying business software to the small, medium and large sized business community. Softline has a solid track record of profitability and cash generation. The group delivers quality accounting, payroll, CRM and ERP software solutions that improve the efficiencies of businesses around the world. For more information please visit www.softline.co.za.
About The Sage Group plc
The Sage Group plc is a leading global supplier of business management software solutions and related products and services, principally for small to medium-sized enterprises. Formed in 1981, Sage was floated on the London Stock Exchange in 1989. Sage has 6.1 million customers and more than 13,400 employees worldwide. We operate in over 24 countries covering the UK, Europe, North America, South Africa, Australia, India and China. For further information please visit www.sage.com.
About Netcash
Netcash, which was established in 2002, is a leading independent electronic payment service provider to SMEs in South Africa, with a customer base of over 6,000 businesses. The company does multi-bank transacting with South Africa's four major banks as well as with Bankserve to facilitate secure online transactions with smaller banks. Services include debit order collections; EFT payments, Credit Card Terminal; Credit Card Gateway; Credit Data; PaySpace. For more information please visit www.netcash.co.za.