Sage Group (SGE) up on Brightpearl acquisition
By Jenni Reid
11:02, 20 December 2021
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.
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.
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.