“Market Cap $6.14 B As of May 2013
At a Glance
- Industry: Software & Programming
- Founded: 1981
- Country: United Kingdom
- CEO: Guy Berruyer
- Website: www.sage.com
- Employees: 13,095
- Sales: $2.16 B
#1813 Global 2000
- #1123 in Profit
- #1507 in Market value
The Sage Group plc, along with its subsidiaries, is principally engaged in development, distribution and support of business management software, and related products and services for medium-sized and smaller businesses. It operates in four segments. Its products and services range from accounts, enterprise resource planning (ERP) and payroll software to payment processing, customer relationship management (CRM) and industry-specific solutions, such as healthcare, manufacturing, non-profit and construction. In November 2011, the Company announced that it has completed the sale of Sage Software Healthcare LLC. On June 25, 2012, the Company acquired a controlling interest in Folhamatic Group (Folhamatic), a provider of accounting, tax and payroll and regulatory content software in Brazil. In September 2012, through its subsidiary Folhamatic Tecnologia em Sistemas S.A. (Folhamatic), it acquired EBS Empresa Brasileira de Sistemas Ltda.”
“Sage Group History
1981 to 2000
The Company was founded by David Goldman together with Paul Muller and Graham Wylie in 1981 in Newcastle, to develop estimating and accounting software for small businesses.
A student at Newcastle University, Graham Wylie, took a summer job with an accountancy firm funded by a government small business grant to write software to help their record keeping. This became the basis for Sage Line 50. Next, hired by David Goldman to write some estimating software for his printing company, Campbell Graphics, Graham used the same accounting software to produce the first version of Sage Accounts. David was so impressed that he hired Graham and academic Paul Muller to form Sage, selling their software first to printing companies, and then to a wider market through a network of resellers.
In 1984 the Company launched Sage software, a product for the Amstrad PCW word processor, which used the CP/M operating system. Sage software sales escalated in that year from 30 copies a month to over 300. The Company was first listed on theLondon Stock Exchange in 1989.
In 1994 Paul Walker was appointed Chief Executive. In 1998 Sage’s Professional Accountants Division was established. In 1999 Sage entered FTSE 100 and launched a dedicated Irish division, based in Dublin as well as its e-business strategy. In that same year the UK acquisition of Tetra saw Sage enter the mid-range business software market.
2000 to 2010
In 2000 Sage shares were named ‘best performing share of the 90s’ in the UK business press. In 2001 Sage acquired Interact Commerce Inc. and entered the CRM/contact management market and in 2002 Sage won ‘Business of The Year’ in National Business Awards. Also that year Sage sponsored the new Music Centre in Gateshead for £6m – now known as The Sage Gateshead – the largest ever UK arts/business sponsorship. By 2003 Sage was the only remaining technology stock in the FTSE 100 Index. In 2003 at age 43 Graham Wylie retired with 108.5 million shares in Sage worth £146m. He was rated Britain’s 109th richest person in the 2002 Sunday Times’ rich list.
Tony Hobson joined the Sage board of directors in June, 2004 and became Chairman in May 2007.
2010 to present
On 19 April 2010, Sage announced that its CEO, Paul Walker, had indicated an interest in stepping down from his position, which he had held for 16 years. The Financial Times reported that his departure would lead to speculation over Sage’s mergers and acquisitions, which have been a key component to the group’s growth in the past 20 years. In an interview with The Times, the CEO of Sage’s UK business stated that: “Acquisitions are part of our DNA”.
Walker was one of the longest serving CEOs of a FTSE100 company, only exceeded by Sir Martin Sorrell at WPP and Tullow Oil’s Aidan Heavey. According to the Daily Mail, Walker is likely to have left Sage with as much as £21 million given his shares, bonus plan and salary. Walker left the company on 1 December 2010.
On 1 October 2010 Guy Berruyer became CEO of Sage Group; Berruyer had previously been CEO of Sage’s Mainland Europe & Asia operations.
On February 15, 2013, Sage announced that Accel-KKR intended to buy Sage Nonprofit Solutions, the division of Sage that produces software designed for nonprofit organizations and governmental agencies.”
*Information from Forbes.com and Sage.com
**Video published on YouTube by “SageGroupPlc“