Sage has acquired US based payroll and HR services group PayChoice for $157.8m, to expand and strengthen its cloud, mobile and payments products.
Sage sells accounting software to SMBs and large corporations, and the company is planning to move towards cloud subscription model over the traditional licensing and maintenance.
The software company also offers payroll and HR solutions, something that PayChoice specialises in and with the acquisition Sage will get access to Pay Choice’s 100,000 customers, who mostly belong to US.
Presently Sage is facing competition from cloud- based rivals like Xero and NetSuite, and recently the company’s organic revenue growth was recorded 5% less when compared to the 2014 midyear results.
Now the company is aiming for 6 % organic growth by 2015 and PayChoice’s could provide it the much needed boost in achieving the target.
Sage North America CEO Pascal Houillon said: "PayChoice is an excellent business, with a strong management team, attractive cloud platform and a proven business model based on supporting the needs of small and medium-sized businesses and licensees."
"We are excited about the growth opportunity that the combination of Sage and PayChoice creates in this market and delighted to welcome the management and staff of PayChoice to Sage."
