by CIO Staff

Sage Takes Share of French Software Firm

News
Jul 24, 20061 min
Mergers and Acquisitions

Sage Group said Monday it has acquired a 51 percent majority share of the Elit Group, a French company that makes business process management software for the transportation and food industries.

The British software company said it will pay 7 euros (US$8.89) per share. The cash deal is valued at 10.8 million pounds (US$20 million). Per French regulations, Sage will make an offer to Elit shareholders for the remaining shares.

Elit’s management software is for medium-size businesses. For its fiscal year that ended June 30, Elit reported a loss of 500,000 pounds on revenue of 18.4 million pounds.

Sage Chief Executive Officer Paul Walker said in a statement the controlling interest in Elit will expand Sage’s range of industry-specific software in the middle market.

Sage produces accounts, payroll and CRM software for small to medium-size enterprises. For fiscal 2005, Sage reported a profit of 143.5 million pounds.

-Jeremy Kirk, IDG News Service (London Bureau)

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