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(Alliance News) - Sage Group PLC on Tuesday said it has acquired Lockstep, which provides cloud native technology to automate accounting workflows between companies.
Sage is a Newcastle, England-based accounting software firm. Washington, US-based Lockstep develops products and services that streamline accounting processes, allowing customers to save time, eliminate human error and improve cash flows.
"The acquisition of Lockstep accelerates Sage's strategy for growth by broadening its value proposition for SMBs and by expanding Sage's digital network," the FTSE 100 constituent said.
Further, Lockstep will "accelerate" the expansion of Sage's digital network by enabling and enhancing connections between businesses and their customers and suppliers, the company added.
It did not reveal a consideration for the deal, but said that Lockstep's management team will join Sage to help drive the development of its digital network.
The acquisition will not affect its financial guidance and is expected to close by the end of September, the company added.
Earlier this month, Sage said it expects organic recurring revenue growth for the financial year that ends September 30 to be towards the top end of its guidance range of 8% to 9%.
Sage Chief Technology Officer Aaron Harris said: "The acquisition of Lockstep represents an important milestone in our growth strategy. Its complementary portfolio of products, resources, and know-how accelerates our ambition to be the trusted network for SMBs.
"Working together we will continue to knock down the barriers that limit chief financial officers and accounting teams by streamlining their workflows, improving productivity and efficiency, and enabling them to focus on more valuable, human work," Harris added.
Shares in Sage were down 0.1% at 743.00 pence each in London early Tuesday.
By Sophie Rose; sophierose@alliancenews.com
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