Sage Group is to acquire Exact Software Deutschland, the German payroll business of Dutch company Exact Holding for €16.25 million (£12.9 million).
The acquisition of Exact Lohn will be made by Sage’s German subsidiary Sage Software. "This is a transformative acquisition for Sage’s payroll business in Germany. It increases payroll revenue to around €30 million and establishes Sage as one of the two leading players in this segment in Germany," said Sage Group.
Exact Lohn provides payroll solutions ranging from payroll software products to full business process outsourcing (BPO) solutions. In 2013, Exact Lohn reported revenue of €10.5 million.
It serves around 3,400 small to medium-sized businesses in Germany, with strong representation in the manufacturing, services and construction sectors. Following the acquisition, Exact Lohn will be integrated into Sage’s German business.
Alvaro Ramirez, chief executive officer of Sage Europe, said: “Exact Lohn strengthens our existing payroll and HCM capability, creating a market leading position in Germany. The acquisition significantly increases our payroll customer base and provides an opportunity for us to drive growth."
The transaction requires approval from the German Federal Cartel Office (the Bundeskartellamt), but is expected to close in the third quarter of 2014, said Sage.