Sage has agree to acquire Brightpearl for £225m as part of the accounting and financial software giant’s move into retail and e-commerce.

Brightpearl, which has headquarters in Bristol in the UK and Austin, Texas in the US, is a cloud native multichannel retail management and operating system for retailers and wholesalers.

Prior to the acquisition, Sage already owned a 17 per cent minority stake in Brightpearl but has chosen to proceed with the purchase as part of its strategy to accelerate the growth of Sage Intacct.

The consideration for the remaining 83 per cent of Brightpearl is $299m (£225m), which will be funded from Sage’s existing cash and available liquidity. The transaction is subject to regulatory approvals in the US and is expected to close in January 2022.

Sage said the deal will create a solution for retailers and wholesalers which integrates financial management, inventory planning, sales order management, purchasing and supplier management, CRM, fulfilment, warehousing and logistics management.

For the year ending December 2021, Brightpearl is expected to generate revenues of $27m (£20m), representing growth of around 50 per cent compared to the prior year.

Commenting on the deal, Steve Hare, chief executive of Sage, said: “Sage’s purpose is to knock down barriers so everyone can thrive. Together, Sage and Brightpearl will remove the barriers that hold back retailers and wholesalers, streamlining their systems and enabling them to focus on growth.

“I’m delighted to welcome Brightpearl, its management team and colleagues to Sage, and look forward to executing on our strategic priorities together and delivering accelerated growth.”

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