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UPDATE 1-Sage enters Brazil with Folhamatic acquisition
Posted on June 20, 2012
Industrials » Technology »
Wed Jun 20, 2012 2:35am EDT
* UK group pays 125 mln stg for 75 pct stake
* Deal gives leading position in fast growing market
* Folhamatic grew revenues at 13 pct last year
LONDON, June 20 (Reuters) – Britain’s Sage Group entered the Brazilian software market on Wednesday by buying Folhamatic Group, a provider of accounting, tax, payroll and regulatory software to small businesses.
Sage said it expected to pay 125 million pounds ($196 million)for a 75 percent stake in Folhamatic. The rest of the group’s equity would be retained by founder and chief executive Mauricio Frizzarin, who will continue to run the business, it said.
The north-east England-based company said Brazil was an attractive market, with some 90 percent of small and medium enterprises (SMEs) not yet using any business software.
“(The deal) provides us with a market leading position in the large and rapidly growing Brazilian market,” Sage Chief Executive Guy Berruyer said.
“We are excited about the growth opportunity that the combination of Sage and Folhamatic creates in this market.”
Sage, whose software is used by more than 6 million SMEs, said the acquisition would be immediately earnings accretive.
The deal values Folhamatic, which grew revenues at 13 percent last year to 42.4 million pounds, at 13.4 times forecast 2012 earnings, it said.