Sage Group Plc is, as reported briefly (CI No 2,022), proposing to take its first step onto the continent with the acquisition of Ciel SA of Paris, and has expanded its US operations with acquisition of Remote Control International Inc. Sage has agreed to buy 95% of Paris-based Ciel’s equity from its management for an initial consideration of UKP1.4m, using existing cash resources. However additional payments of up to UKP5.3m may be made, dependent on incremental revenues over two years. The option also exists to make up to half of the additional payments via the issue of new ordinary shares in Newcastle-upon-Tyne based Sage. A put-and-call option has been agreed too for the remaining 5% of Ciel’s share capital, exercisable from January 1 1995. The acquisition is conditional on receiving French regulatory approval. Sage is hoping that Ciel will provide it with an opportunity to break into the rapidly developing French market for small business accounting packages. As for Remote Control International, this company is best known for its TeleMagic sales automation software. Aimed at the higher end of the market, Telemagic is used to control and develop sales contacts and leads as well as in sales order processing. However, as this market is experiencing rapid growth at the moment, Sage considers that there are significant opportunities for marketing the product on an international basis. The acquisition of Remote is seen as a logical extension to the group’s product range, taking it into areas closely related to its traditional accounting software activities. Further benefits are anticipated for DacEasy, Sage’s principal US subsidiary. It will gain access to Remote’s network of 1,000 value-added resellers, which it is hoped will accelerate the launch of its Flagship accounting package. Sage has so far escaped the curse that seems to fall on US software companies moving into the US, and remains a darling of the UK financial press.
