Newcastle’s Sage acquires German payroll business for £12.8 million

Newcastle-based Sage Group plc has announced the acquisition of Exact Software Deutschland GmbH, the German payroll business of Exact Holding N.V., for a cash consideration of €16.25 million (£12.87 million).

The acquisition will be made by Sage’s German subsidiary, Sage Software GmbH.

The move increases payroll revenue to approximately €30 million 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.