The Newcastle Great Park-based tech giant is paying £125m for a 75% stake in the Folhamatic Group, which is the market leading accountancy software provider for SMEs inBrazil, now the world’s sixth biggest economy.
The price equates to 13 times Folhamatic’s EBITA (earnings before interest, tax and amortisation), compared to the market average of 15 times EBITA. The acquisition will add to Sage’s earnings immediately.
Chief executive Berruyer, who took the Sage helm in October 2010, said: “We are delighted to announce the acquisition of a controlling interest in Folhamatic.
“It provides us with a market-leading position in the large and rapidly-growing Brazilian market. We are excited about the growth opportunity that the combination of Sage and Folhamatic creates in this market.
“Folhamatic is an outstanding business, with strong management, and we are delighted to welcome the management and staff to the group.”
Folhamatic’s founder and CEO, Mauricio Frizzarin, will retain the remaining 25% equity in business.