Sage is on the hunt for action among retailers and wholesalers with plans to acquire Brightpearl for $299 million (£225 million).
The acquisition of Brightpearl, in which Sage already has a 17% minority stake, means a boost for its software Sage Intacct and helps its ambitions with mid-sized businesses. Sage had previously participated in the £9.1 million Series A funding round of Brightpearl.
Brightpearl has offices in Austin (Texas) and Bristol. The firm has 192 employees listed on LinkedIn and it seems jobs are safe.
Steve Hare, Chief Executive Officer of Sage, comments: “I’m delighted to welcome Brightpearl, its management team and colleagues to Sage.”
Sage is based in Newcastle upon Tyne and has 13,000 employees. It was founded in 1981.
Brightpearl was established in 2007 and provides a SaaS-based retail operating system.
As noted above, Sage Intacct and Brightpearl will be integrated to offer a solution for retailers and wholesalers which combines financial management, inventory planning, sales order management, purchasing and supplier management, CRM, fulfilment, warehousing and logistics management.
According to Brightpearl, over 1,200 businesses in 26 countries use its platform and it manages over 10 million transactions and $5 billion (£3.7 billion) of business a year. Its system has connectors to various e-commerce platforms, including Magento, BigCommerce and Shopify.
Looking ahead, for the year ending December 2021, Sage says Brightpearl is expected to generate revenues of $27 million (£20 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 2022.
Sage is certainly partial to acquisitions.
In October, the cloud business management solutions provider bought GoProposal, a Manchester-based provider of proposal management software for small and mid-sized accountancy firms.
In March it made the acquisition of Task Sheriff, an AI-based SaaS technology startup based in Tel Aviv, for an undisclosed sum.
Prior to that, Sage confirmed its investment in Countingup, a London-based fintech offering entrepreneurs a business current account with built-in accounting software.