Sage acquires PayChoice
Sage Group has agreed to acquire PAI Group, Inc., a provider of payroll and HR services for small and medium-sized businesses in the US. The acquisition accelerates Sage's move to the Cloud in this market by leveraging PayChoice's Software as a Service platform.
PayChoice is an attractive fit with Sage, and strengthens Sage's position in the large and growing US payroll market. PayChoice's product portfolio provides easy to use online payroll solutions to SMBs, and strengthens the Sage value proposition to customers with a more robust and comprehensive offering.
The combined portfolio provides attractive growth opportunities, particularly through new customer acquisition and cross-sell to the combined customer base.
PayChoice is a profitable business with a high proportion of recurring subscription revenue. The consideration payable is $157.8m in cash. The transaction is subject to customary closing conditions and is expected to be completed in October 2014.