Sage Group To Buy US-based PayChoice For $157.8 Mln - Update

(RTTNews) - Sage Group Plc (SGE.L), a provider of business management software, Monday said it has agreed to acquire US-based PAI Group, Inc., or PayChoice, for $157.8 million or 96.9 million pounds in cash.

PayChoice provides payroll and HR services for small and medium-sized businesses or SMBs, in the US. Sage noted that the acquisition will strengthen its position in the large and growing US payroll market.

Further, Sage said the acquisition accelerates its move to the Cloud in this market by leveraging PayChoice's Software as a Service or SaaS platform.

According to Sage Group, PayChoice is a profitable business with a high proportion of recurring subscription revenue. The transaction is expected to be completed in October.

Founded in 1990, New Jersey-headquartered PayChoice employs 260 people, and has 16 offices across the US. The firm provides full-service and self-service payroll and HR services to more than 100,000 SMBs in the US, through a direct sales force and third-party licensee channel.

For fiscal 2013, PayChoice reported revenues of $38.9 million.

Pascal Houillon, CEO of Sage North America stated, "PayChoice is an excellent business, with a strong management team, attractive cloud platform and a proven business model based on supporting the needs of small and medium-sized businesses and licensees."

SGE.L is currently trading at 377.50 pence, up 0.40 percent.