Sage Buys German Business Software Vendor Baurer

Sage Group, the British business software vendor, said Thursday it will buy Baurer, a business management software company, for 16 million pounds (US$29.8 million).

The cash acquisition of Baurer will help strengthen Sage’s market position in Germany, Sage Chief Executive Paul Walker said in a statement. Baurer makes advanced business management software for about 2,000 midmarket customers, Sage said.

By buying Baurer, Sage will have access to the “bedrock” of the German economy—midmarket manufacturing companies, said David Bradshaw, principal analyst for Ovum in London. The acquisition continues moves by Sage to bolster its position throughout Europe, he said.

“They are definitely looking to expand further in Europe,” Bradshaw said.

Sage in March tried to buy Visma, a Norwegian business management software vendor, for 334 million pounds. The offer was turned down for a higher one from venture capital firm Engel Holding in April.

Sage, which has 10,000 employees worldwide, produces accounts, payroll and CRM software for small to medium-size enterprises. For fiscal 2005, Sage reported a profit of 143.5 million pounds.

Baurer’s revenue for the year ending Dec. 31, 2005, was 16 million pounds, with earnings before depreciation and amortization of 1.2 million pounds.

-Jeremy Kirk, IDG News Service (London Bureau)

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