Cloud retail system Brightpearl has been snapped up by Sage in a 拢225 million deal.
Sage Group plc, which provides accounting, financial, HR and payroll technology for small and mid-sized businesses, says the deal will expand its reach in the retail and eCommerce vertical.
Brightpeal is a cloud-native multi-channel retail management system for retailers and wholesalers which has operations in the US and UK. Sage already holds a 17% minority stake in the business.
The companies say the combination of Sage Intacct and Brightpearl will create a powerful solution for retailers and wholesalers which integrates financial management, inventory planning, sales order management, purchasing and supplier management, CRM, fulfilment, warehousing and logistics management.聽
The consideration for the 83% of Brightpearl that Sage does not already own is 拢225m, which will be funded from Sage鈥檚 existing cash and available liquidity.聽
For the year ending December 2021, Brightpearl is expected to generate revenues of 拢20m, representing growth of around 50% compared to the prior year, and to achieve operating profit around the breakeven level.聽
The transaction is subject to regulatory clearance under the Hart-Scott-Rodino Act in the US, and is expected to close in January 2022.聽聽聽
鈥淪age鈥檚 purpose is to knock down barriers so everyone can thrive,鈥� said CEO Steve Hare.
鈥淭ogether, Sage and Brightpearl will remove the barriers that hold back retailers and wholesalers, streamlining their systems and enabling them to focus on growth.聽
鈥淚鈥檓 delighted to welcome Brightpearl, its management team and colleagues to Sage, and look forward to executing on our strategic priorities together and delivering accelerated growth.鈥澛犅�
Derek O鈥機arroll, CEO of Brightpearl, commented:聽 鈥淲e are thrilled to be joining Sage. Bringing our two teams together will combine the retail strength of Brightpearl and the scale, brand and financial expertise of Sage, enabling us to offer customers the most innovative financial and retail operating solutions so they can grow fearlessly, save time and deliver outstanding experiences.鈥�