Software company Sage said it has transformed its position in the German payroll market following a key acquisition in the European country.
The Sage Group, headquartered in Gosforth, Newcastle, has bought Exact Software Deutschland GmbH (Exact Lohn), the German payroll business of Exact Holding NV, for €16.25m (£12.87m).
The firm said the move – made by its German subsidiary Sage Software GmbH – represents a transformative acquisition for its payroll business in Germany, increasing payroll revenue to approximately €30m (£23.7m) as well as establishing Sage as one of the two leading players in this segment in Germany.
Exact Lohn provides payroll solutions ranging from payroll software products to full business process outsourcing solutions. In 2013, the firm reported revenue of €10.5m (£8.3m).
It serves approximately 3,400 small to medium-sized businesses in Germany, with strong representation in the manufacturing, services and construction sectors.
Exact Lohn is to be integrated into Sage’s German business.
Alvaro Ramirez, chief executive officer of Sage Europe said: “We are excited about the growth opportunity that the combination of Sage and Exact Lohn creates for our German business.
“Exact Lohn strengthens our existing payroll and HCM capability, creating a market leading position in Germany.
“The acquisition significantly increases our payroll customer base and provides opportunity for us to drive growth through our enlarged customer base.”
The transaction requires approval from the German Federal Cartel Office and is expected to close in the third quarter of 2014.