Software giant Sage Group has announced it is accelerating its progress in the Cloud by acquiring a US payroll service provider for more than £96m.
The Newcastle-headquartered firm has bought out PAI Group Inc, trading as PayChoice, a firm which delivers payroll and HR services for SMEs in the US.
A market note stated the acquisition speeds forward its move to the Cloud in this market, adding that PayChoice makes an attractive fit with Sage and strengthens its position in the large and growing US payroll market.
The firm said the combined portfolio of Sage and PayChoice, which offers online payroll solutions to small and medium sized business, also provides attractive growth opportunities, within new and existing customer bases.
Sage has acquired the US firm for a cash considering of $157.8m (£96.9m), a transaction subject to customary closing conditions which is expected to be completed next month.
Pascal Houillon, chief executive officer of Sage North America, said: “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.
“We are excited about the growth opportunity that the combination of Sage and PayChoice creates in this market and delighted to welcome the management and staff of PayChoice to Sage.”
Robert Digby, chief executive officer of PayChoice, added: “PayChoice is thrilled to become a part of Sage. We already share so many synergies: our heritage of supporting SMBs, our culture, our emphasis on customer experience, and our focus on accountants and financial institutions.
“This is a great move for our company and we see nothing but tremendous opportunity in the future.”