Member Article

Newcastle’s Sage completes £12.8 million German payroll acquisition

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

Initially announced on 21 July 2014, the acquisition’s completion means that Sage will increase payroll revenue to approximately €30 million, establishing itself as one of two leading players in this segment in Germany.

Despite Sage’s announcement of the acquisition 8 weeks ago, the company had to wait for the transaction to be approved by the German Federal Cartel Office (Bundeskartellamt).

Exact Holding N.V. provide payroll software products to business process outsourcing solutions and reported €10.5 million in revenue for 2013.

Currently the provider serves 3,400 SMEs in Germany’s manufacturing, services and construction sectors.

Alvaro Ramirez, chief executive officer of Sage Europe, said: “The acquisition significantly increases our payroll customer base and provides opportunity for us to drive growth through our enlarged customer base.”