Sage Group plc (LON:SGE), the leader in accounting, financial, HR and payroll technology for small and mid-sized businesses (SMBs), has announced that it has agreed to acquire Lockstep, a provider of cloud native technology that automates accounting workflows between companies. The acquisition of Lockstep accelerates Sage’s strategy for growth by broadening its value proposition for SMBs and by expanding Sage’s digital network.
Headquartered in Seattle, Washington (US) and employing over 130 colleagues, Lockstep develops products and services that streamline accounting processes, allowing customers to save time, eliminate human error and improve cash flows. Its solutions include applications to automate accounts receivable and accounts payable workflows, deepening Sage’s capabilities in the office of the CFO, while its API platform expands the ecosystem by enabling third parties to develop connected services. Today the Lockstep platform enables network connections into more than 40 different accounting solutions, and over 26,000 businesses are already part of its ecosystem.
The acquisition is aligned with Sage’s ambition to be the trusted network for SMBs. It accelerates the expansion of Sage’s digital network by enabling and enhancing connections between businesses and their customers and suppliers. As part of the transaction, Lockstep’s highly experienced management team will join Sage to help drive the development of Sage’s digital network.
The acquisition does not affect Sage’s previously communicated financial guidance and is expected to close by the end of September.
Aaron Harris, Chief Technology Officer of Sage, commented:
“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 CFOs and accounting teams by streamlining their workflows, improving productivity and efficiency, and enabling them to focus on more valuable, human work.”
Peter Horadan, Chief Executive Officer of Lockstep, commented:
“Over the years it has become abundantly clear that Lockstep and Sage have the same vision for the future of the industry. Since inception, our mission has been to improve and transform the way companies do business with one another. Together with Sage, we look forward to accelerating the development of connected accounting which is imperative for accountants, finance teams and the companies they serve.”