Sage in £20m acquisition

Accountancy software group Sage was back on the acquisition trail today after buying payroll specialist KCS Global for £20m (€28.6m).

Newcastle-based Sage said the deal would help the company extend its presence in payroll and human resources software following its £17m (€24.3m) acquisition of software firm Snowdrop in May.

KCS, based in Purley, Surrey, has customers including the Specsavers opticians chain and car dealership Reg Vardy.

The company has around 80 staff, with other offices in Birmingham and Bury St Edmunds, Suffolk.

Existing management, led by managing director Alan Snell, own 65% of the business, with venture capital company Northern Venture Managers holding 35%.

Sage chief executive Paul Walker said: “HR and payroll is an important and growing sector of the business software market.

“This acquisition represents an excellent opportunity for Sage to consolidate its position as one of the leading suppliers in this sector.”

The deal comes just over two weeks after Sage axed two senior managers following disappointing sales figures from its North American business, although the firm said it expected full-year results to be in line with expectations.

Sage, which aims its software at small to medium sized businesses, was founded in 1981. The company floated in 1989 and now has more than 13,000 staff worldwide.