Leading accounting, financial, HR and payroll technology company Sage Group plc has agreed to acquire Lockstep, a provider of cloud native technology that automates accounting workflows between companies. The acquisition accelerates Sage’s strategy for growth by broadening its value proposition for SMBs and by expanding Sage’s digital network.
The Seattle-based 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 more than 26,000 businesses already are part of its ecosystem.
The acquisition is aligned with Sage’s ambition to be the trusted network for today's small and medium businesses. It accelerates the expansion of Sage’s digital network by enabling and enhancing connections between businesses and their customers and suppliers.
Aaron Harris, Chief Technology Officer of Sage, says the acquisition represents an important milestone in its 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.”
Over the years, Lockstep CEO Pete Horadan says it has become abundantly clear that the companies hold 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.”
As part of the transaction, Lockstep’s highly experienced management team will join Sage to help drive the development of Sage’s digital network. Lockstep employs 130-plus people. The acquisition does not affect Sage’s previously communicated financial guidance and is expected to close by the end of September.
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