|Public limited company|
|Traded as||LSE: SGE|
FTSE 100 Component
|Headquarters||Newcastle upon Tyne, England, United Kingdom|
Number of locations
|Offices in 24 countries|
|Donald Brydon CBE (Chairman)|
Varying according to country, MRP
|Revenue||£1,715 million (2017)|
|£348 million (2017)|
|£300 million (2017)|
|£3,223 million (2017)|
|£1,168 million (2017)|
Number of employees
The Sage Group plc, commonly known as Sage, is a British multinational enterprise software company headquartered in Newcastle upon Tyne, United Kingdom. It is the UK's second largest technology company and is the world's third-largest supplier of enterprise resource planning software (behind Oracle and SAP), the largest supplier to small businesses, and has 6.1 million customers worldwide. It has offices in 24 countries. The company is the patron of the Sage Gateshead music venue in Gateshead.
A student at Newcastle University, Graham Wylie, took a summer job with an accountancy firm funded by a government small business grant to write software to help their record keeping. This became the basis for Sage Line 50. Next, hired by David Goldman to write some estimating software for his printing company, Campbell Graphics, Graham used the same accounting software to produce the first version of Sage Accounts. David was so impressed that he hired Graham and academic Paul Muller to form Sage, selling their software first to printing companies, and then to a wider market through a network of resellers.
In 1984 the Company launched Sage software, a product for the Amstrad PCW word processor, which used the CP/M operating system. Sage software sales escalated in that year from 30 copies a month to over 300. The Company was first listed on the London Stock Exchange in 1989.
In 1994 Paul Walker was appointed Chief Executive. In 1998 Sage's Professional Accountants Division was established. In 1999 Sage entered FTSE 100 and launched a dedicated Irish division, based in Dublin as well as its e-business strategy. In that same year the UK acquisition of Tetra saw Sage enter the mid-range business software market.
In 2000 Sage shares were named 'best performing share of the 90s' in the UK business press. In 2001 Sage acquired Interact Commerce Inc. and entered the CRM/contact management market and in 2002 Sage won 'Business of The Year' in National Business Awards. Also that year Sage sponsored the new Music Centre in Gateshead for £6m - now known as Sage Gateshead - the largest ever UK arts/business sponsorship. Sage are one of two technology stocks listed on the FTSE 100 Index, the other being Micro Focus. In 2003 at age 43 Graham Wylie retired with 108.5 million shares in Sage worth £146m. He was rated Britain's 109th richest person in the 2002 Sunday Times' rich list.
Tony Hobson joined the Sage board of directors in June 2004 and became chairman in May 2007.
On 19 April 2010, Sage announced that its CEO, Paul Walker, had indicated an interest in stepping down from his position, which he had held for 16 years. The Financial Times reported that his departure would lead to speculation over Sage's mergers and acquisitions, which have been a key component to the group's growth in the past 20 years. In an interview with The Times, the CEO of Sage's UK business stated that: "Acquisitions are part of our DNA".
Walker was one of the longest serving CEOs of a FTSE100 company, only exceeded by Sir Martin Sorrell at WPP and Tullow Oil's Aidan Heavey. According to the Daily Mail, Walker is likely to have left Sage with as much as £21 million given his shares, bonus plan and salary. Walker left the company on 1 December 2010.
On 15 February 2013, Sage announced that Accel-KKR intended to buy Sage Nonprofit Solutions, the division of Sage that produces software designed for nonprofit organisations and governmental agencies.
In March 2017, Sage Group announced an agreement to acquire Compass, a highly innovative analytics and benchmarking platform. The acquisition of the Compass' platform and talented team aimed to help accelerate Sage's drive to level the playing field between small businesses and 'big business' by providing its customers with high quality analytics and real-time actionable insight, using the power of big data.
On 31 August 2018, Sage announced that the Board and Stephen Kelly had come to an agreement and that Kelly had stepped down as a director and CEO. On 2 November 2018 Steve Hare was appointed CEO. Hare had been Chief Financial Officer of Sage since 2014 and had been interim COO following the departure of the previous CEO. Prior to joining Sage, Hare had roles as an Operating Partner at Apax Partners and as a CFO at companies such as Marconi plc and Invensys.
Founded and headquartered in Newcastle upon Tyne, United Kingdom, the company initially grew organically, but more recently has grown primarily through acquisitions. In 2004 the company's new headquarters was completed in the Great Park area of Newcastle upon Tyne; the company was previously located at Benton Park House. It now operates worldwide. The company's US headquarters are in Atlanta, Georgia, the Canadian headquarters are in Richmond, British Columbia, the Africa, Middle East & Australia headquarters are in Johannesburg, South Africa and the French and Continental European headquarters are in Paris, France. Sage has 6.1 million customers and 13,400 employees across the world. Key industry focus includes: Healthcare; HR & Payroll; Construction/ Real-Estate; Transport/ Distribution; Payment Processing; Accountancy; Not-for-Profit; Manufacturing; Retail; Automotive Distribution.
|Acquisition number||Acquired company||Acquisition date||Specialty||Country of origin||Acquisition costs|
|51||Intacct Corporation||2017||Cloud accounting (now known as Sage Intacct)||USA||$850m|
|50||Fairsail Limited||2017||HCM Cloud (now known as Sage People)||UK||Undisclosed |
|49||PAI Group, Inc. ("PayChoice")||2014||Payroll (now known as Sage Payroll Solutions)||USA||$157.8m|
|48||Exact Software Deutschland GmbH||2014||Payroll||Germany||EUR16.25m|
|47||Empresa Brasileria de Sistemas Ltda||2012||Accounting, business management, and tax software||Brazil||R$35m|
|46||Cenize Informatica Ltda||2012||Accounting software||Brazil||R$12.9m|
|45||Folhamatic||2012||Software for management, business, accounting, financial and fiscal policies||Brazil||R$398m|
|43||Alchemex||2011||Business Intelligence||South Africa||£6.7m|
|42||Netcash||2010||Payment Processing||South Africa||ZAR 120m|
|35||KCS||2007||HR and payroll||UK||£20m|
|34||Snowdrop||2007||HR and payroll||UK||£17m|
|32||Creative||2007||HR and payroll||Singapore||£4m|
|27||Elit||2006||Transport and food distribution||France||£31m|
|26||Protx||2006||Payment processing (now known as Sage Pay)||UK||£20m|
|25||Bäurer||2006||Mid-market accounting, Retail & Manufacturing||Germany||£16m|
|24||Master Builder/Contractor Anywhere||2006||Construction||USA||£16m|
|22||Logic Control||2005||Midmarket accounting||Spain||£56m|
|20||Symfonia (accounting software)Symfonia||2005||Entry-level accounting||Poland||£10m|
|18||ACCPAC||2004||Midmarket accounting||USA, Canada||£76m|
|17||Grupo SP||2004||Entry-level accounting||Spain||£55m|
|16||Softline||2004||Entry-level accounting||South Africa||£53m|
|15||Unknown Limited||2004||Payroll, Accountants vertical||Australia|
|14||FLS||2004||HR and payroll||USA||£10m|
|9||Best||2000||Fixed asset, Payroll, HR||USA||£14m|
|8||Peachtree||1999||Entry-level accounting (now known as Sage 50cloud Accounting)||USA||£88m|
|5||State of the Art||1998||Midmarket accounting||USA||£131m|
|3||Sybel & Saari||1995||Midmarket accounting||France||£46m|
Financial results are as follows:
|Sept year-end, £ millions||2002||2003||2004||2005||2006||2007||2008||2009||2010||2011||2012||2013||2014||2015||2016||2017|
The company's core product set can be divided into three areas: Accounting, Payroll & Human Capital Management and Payments. In 2018 Sage's global cloud products were renamed and brought under the banner of the Sage Business Cloud; these include Accounting (formerly Sage One), Payroll, Financials (formerly Sage Live), Sage Intacct, Enterprise Management (formerly X3), People and Payments.
As Sage operates in a large number of countries the available product set varies and typically includes products specifically tailored for each region's nuanced legislation regarding accounting, payroll and taxation. Sage's more regional product ranges include ProvideX, Sage 50cloud Accounts (UK), Sage 50 Accounting, Sage 50cloud Payroll, Sage 100, Pastel Accounting, Sage 200cloud, Sage 300, Sage 1000 and Sage CRM.
The Sage Group is a patron of The Sage Gateshead, a Tyneside music venue designed by Sir Norman Foster. The Sage Gateshead was completed in 2004 at a cost of £70 million, and has since become a main sight on the River Tyne. It is primarily used as a concert venue and centre for musical education, but also hosts other events including conferences.
In 2008 Sage funded the revival of The Krypton Factor television series for ITV as a part of the Business Brain Training campaign. Sage were the football shirt sponsor in May 2011 for Whitley Bay F.C.'s FA Vase winning match.
At this value, Micro Focus will leapfrog Sage as the FTSE 100's biggest technology firm and into the UK's 50 most valuable public companies.
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