Sage buys US software group
Newcastle-based accountancy software group Sage has ventured in the US market, following the acquisition of Timberline in a deal worth £63.9m.
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Sage is the only software company left in the FTSE-100 but has been struggling to keep its place on the blue-chip list following drops in its share price.
The purchase of Timberline, which provides business software to the construction and real estate market, is part of Sage’s strategy of growth through acquisitions.
Timberline shareholders will receive $8.25 per share, a premium of 33.3% to the closing share price of Timberline on 16 July 2003.
Sage chief executive Paul Walker said: ‘The acquisition of Timberline fits with our strategy of acquiring locally developed and locally supported market-leading software brands. Timberline will expand our business into two significant vertical markets: construction and real estate. We expect to create value through selling Timberline’s products to our large and growing US customer base, and also through selling additional Sage products and services to Timberline customers.’
