Sage Group to Buy Best Software for $445 Million
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Best Software, which offers a range of Web-centric management and human resources solutions, will be purchased in an all-cash deal with its shares valued at $35 each.
By acquiring Best, the U.K. company aims to bolster its position in the U.S. business market and adds a complementary line of HR, payroll, fixed asset and analytic solutions to its accounting and business management software. The two companies expect to complete the transaction by mid-February.
"The strategic fit with our existing U.S. businesses is strong," claimed Paul Walker, chief executive officer for Sage Group plc, Sage Software's parent company. "Our combined businesses will represent a powerful force in the U.S. small to medium-sized business market."
David Hanna, chief executive officer of Sage U.S., pointed to Best's Imperativ technology, which offers medium-sized businesses a range of payroll and other human resource services.
The purchase will also add 50,000 customers to Sage, building on the 1 million added with the $145 million acquisition of Peachtree Software last year.
After the acquisition, Sage will have four major business divisions in the U.S. -- Sage Software, Inc. sells accounting software to small to mid-size businesses; Sage Time Division provides time and fee billing software to accountants; Peachtree is a major brand of accounting software for very small businesses; while Best Software completes the round.