Q&A: Sage's move to CRM
Each week we ask experts about development in the technology field. This week, Eddie Short, associate director of DMR Consulting, talks through Sage's move into the CRM market.
Q:
Does this acquisition make sense for Sage?
A: Undoubtedly yes. It is getting into the hottest arena out there at the moment. Interact is a well-established and profitable brand and it is good to see a UK business buying a US company.
Q: Was the valuation of the company a little steep?
A: Sage has taken a slight punt on the price it has paid, but obviously hopes market prices have reached the bottom.
Q: Was the deal done purely to maintain share price?
A: In the UK Sage has managed to keep its own valuation very strong as others have dipped. It has bought a number of companies in the last 12 months and has kept its profile up. With this deal, Sage has bought a like-minded solution and there are definite synergies between the companies.
Q: Should we expect more companies to move into CRM?
A: CRM is this year’s hot area and we are likely to see a number of big and medium-sized players making moves into this arena.
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