CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Sage Group (SGE) up on Brightpearl acquisition

By Jenni Reid

11:02, 20 December 2021

Sage Group PLC logo
Newcastle-based Sage Group PLC will pay £225m to acquire the remainder of Brightpearl – Photo: Shutterstock

UK enterprise software firm Sage Group (SGE) rose slightly on the London Stock Exchange on Monday morning as it announced that it would acquire cloud-based retail management system Brightpearl. 

Newcastle-based Sage will pay £225m ($299m) cash for the 83% of Brightpearl it does not already own, funded by cash and available liquidity.

SGE stock was up 0.6% to 818.60p at 11:00 GMT. 

Growth strategy

Sage said the move would accelerate its growth strategy and broaden its value proposition for mid-sized businesses. 

Sage produces accounting and financial management software, while Brightpearl is a UK and US-based Software as a Service (SaaS) company with a system providing real-time business insights and workflow automation. 


16,080.90 Price
+0.500% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 7.0


44,189.65 Price
+1.760% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

Oil - Crude

71.41 Price
+2.320% 1D Chg, %
Long position overnight fee -0.0204%
Short position overnight fee -0.0015%
Overnight fee time 22:00 (UTC)
Spread 0.030


2,004.85 Price
-1.180% 1D Chg, %
Long position overnight fee -0.0198%
Short position overnight fee 0.0116%
Overnight fee time 22:00 (UTC)
Spread 0.50

Brightpearl is expected to bring in £20m in revenue in 2021, up 50% year-on-year, with operating profit just about breaking even. 

Sage reported a fall in annual operating profit to £343m in its full-year results to 30 September, though its share price rose 8% as it highlighted revenue growth, more recurring business and investments in its cloud-based products. 

Its stock is up 39% in the year to date.

Read more: Sage Group pre-tax profits fall sharply in first year half

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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