Acquisition(s)
23 12월 2003 - 8:00PM
UK Regulatory
23 December 2003
The Sage Group plc announces agreement to acquire North American business
management software vendor ACCPAC
The Sage Group plc ("Sage") announces that it has agreed to acquire ACCPAC
International Inc. ("ACCPAC"), a subsidiary of Computer Associates
International Inc., based in California, for an equity value of �62.5 million.
ACCPAC has net cash of �2.3 million, giving an enterprise value of �60.2
million. The acquisition will be paid for in cash. It is subject to regulatory
approvals and is expected to complete by the end of February 2004.
ACCPAC is a vendor of a suite of business management solutions including
accounting and customer relationship management (CRM) software for small and
medium-sized businesses ("SMEs"). ACCPAC has over 140,000 larger SME customers,
notably in the US, Canada, South Africa, Australia and Singapore. ACCPAC also
serves 400,000 small SMEs, predominantly in Canada. It serves these markets
through a network of over 7,000 channel partners.
ACCPAC's revenue for the year ended 31 March 2003 was �5 0.4 million, and its
operating profit was �5. 9 million*. It had net assets of �4. 7 million.
The acquisition of ACCPAC will establish Sage with a market-leading position in
Canada. It will also strengthen Sage's position in the important US market for
larger SMEs. ACCPAC also has businesses in Australia and South Africa, which
will complement Sage's existing operations, and a strong position in Singapore
providing an entry into the Asian markets. ACCPAC's CRM offering includes an
internet-hosted solution, which will complement Sage's desktop solutions.
Paul Walker, Sage Chief Executive, commented, "Acquiring ACCPAC has not only
strengthened our North American market position by establishing a position in
Canada, but has added to our product offering in the Southern Hemisphere. In
addition, ACCPAC's internet-based CRM offering extends the options available to
those of our customers seeking to purchase front-office solutions. ACCPAC will
add value to our existing businesses by strengthening their competitive
positions. Our own customer service and marketing expertise will enable us to
sell more software and services to ACCPAC's large customer base".
A conference call for analysts will be held to discuss this announcement. In
light of the holiday season, this call will be held at 10:30am on Tuesday 6th
January. No further new material information will be discussed during the call.
All financial information calculated on the basis of �1 = $1.76
*After adding back charges for amortisation of purchased goodwill.
Enquiries
The Sage Group plc +44 (0) 191 255 3000 Tulchan +44 (0) 20 7353 4200
Paul Walker, Chief Executive Julie Foster
Paul Harrison, Finance Director Kirstie Hamilton
Phil Branston, Investor Relations
Notes to editors
The Sage Group plc is a leading international supplier of accounting and
business management software solutions and related products and services for
small to medium-sized enterprises. Formed in 1981, Sage was floated on the
London Stock Exchange in 1989 and the Group now employs over 7,000 people
worldwide.
END