The Sage Group announces Brightpearl acquisition
The Sage Group, which specialises in accounting, financial, HR and payroll technology for small and mid-sized businesses, is set to acquire Brightpearl, a cloud native omnichannel retail management system for retailers and wholesalers.
Sage already has a 17% minority stake Brightpearl. The consideration for the other 83% is $299 million, which will be funded from Sage’s existing cash and available liquidity.
For the year ending December 2021, Brightpearl is expected to generate revenues of $27 million, representing growth of around 50% compared to the prior year, and to achieve operating profit around the breakeven level.
The transaction is subject to regulatory clearance under the Hart-Scott-Rodino Act in the US, and is expected to close in January.
Steve Hare, CEO at Sage, comments: “Our purpose is to knock down barriers so everyone can thrive.”
“Together, Sage and Brightpearl will remove the barriers that hold back retailers and wholesalers, streamlining their systems and enabling them to focus on growth.”
“I’m delighted to welcome Brightpearl, its management team and colleagues to Sage, and look forward to executing on our strategic priorities together and delivering accelerated growth.”
Derek O’Carroll, CEO at Brightpearl, says: “Bringing our two teams together will combine the retail strength of Brightpearl and the scale, brand and financial expertise of Sage, enabling us to offer customers the most innovative financial and retail operating solutions so they can grow fearlessly, save time and deliver outstanding experiences.”
