Sage returns to acquisition trail

Software group Sage today secured its first major acquisition since failing to land Norwegian rival Visma in April.

The Newcastle, England-based group said it would pay around £297m (€441m) for Florida-based Emdeon Practice Services, which provides software and services to doctors and small clinics in the United States.

Sage said the deal, which is expected to be completed by next month, will form the basis for a new doctors’ practice division, which it will grow organically and through further acquisitions.

The company thought it landed Visma with a £334m (€495.6m) offer earlier this year, but the target’s board withdrew its recommendation and the company was eventually bought by private equity firm Hg Capital for a higher price.

Sage, which employs 10,500 staff around the world and is the last remaining technology stock in the FTSE 100 Index, sells accountancy software and other services to five million small and medium-sized firms.

The acquisition brought a mixed response from investors today, with shares initially up before settling more than 1% lower at 218.75p.