22nd Sep 2014 08:41
LONDON (Alliance News) - The Sage Group PLC said Monday that it has agreed to acquire payroll and human resource services provider PAI Group Inc for USD157.8 million in cash.
PAI Group, also known as PayChoice, provides services for small and medium-sized business. Sage said that the acquisition would speed up its move to the Cloud in this market, using PayChoice's software-as-a-service platform.
Sage said that acquisition strengthens its position in the growing US payroll market, and bolsters its portfolio of customer offerings.
PayChoice posted revenue of USD38.9 million for 2013; Sage said that the company is a profitable business, with a high proportion of recurring subscription revenue.
The deal is expected to complete in October.
"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," Chief Executive of Sage North America Pascal Houillon said in a statement.
Shares in the company were trading down 0.04% at 375.86 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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