Sage acquires accountancy software company

software companies, AccountancyAge reports.

The company bought Folhamatic, which also supplies payroll and regulatory software to accountancy practices and SMEs in Brazil.

According to The Independent, Folhamatic's founder and CE, Mauricio Frizzarin, is retaining the remaining stake in the business and will continue to run it, Sage said.

The British company pointed out that some 90% of the six million SMEs in Brazil do not yet use any business software, a statistic it hopes to change.

Milan Radia, an analyst at Jefferies, said it made sense for Sage to increase its presence in fast-growing regions, adding that it was paying a "fair price" for an asset with some unique qualities in the market, Reuters notes.

The company added that the acquisition would immediately boost earnings per share. The deal values Folhamatic, which increased revenues 13% to £42.4 million last year, at 13.4 times forecast 2012 earnings, Sage said.