Sage offer to purchase Softline approved

Softline, the accounting software company, has today announced the completion of its acquisition by Sage Group plc, following Competition Commission and Exchange Control approval. Previously, on 23 September 2003, shareholders voted to accept an offer of R2 per share by Sage Group plc.

The electronic transfer of funds to shareholders will take place on 24 November 2003 and Softline will delist from the Johannesburg Securities Exchange on 25 November 2003.

Softline was founded in 1988 by Ivan Epstein, Steven Cohen and Alan Osrin, and has grown from a R5 000 start-up to its current value. During the past 15 years, Softline has continually been profitable and recorded positive cash positions and growth in operational earnings. Founded and headquartered in SA, Softline established a global position extending into the Australian and North American markets.

Softline's position as a leading software company combined with its global reach made the company an appealing acquisition option for international companies. The R785 million cash purchase by Sage Group plc makes this transaction one of the largest inward foreign IT investments into SA in the past year and demonstrates confidence in the strength, viability and potential of Softline and its management.

All operational activities of the Softline Group will continue as usual. All leading product brands belonging to the Softline portfolio including Pastel, Brilliant and VIP software, will continue to operate as their respective brands.

In addition, the existing Softline management team of Ivan Epstein, chief executive officer, and Steven Cohen, together with the entire management team will continue to drive and run the group's operations.

Paul Walker, Sage chief executive officer, commented: "We are pleased that approval for the purchase has been granted. This acquisition provides Sage with a strong market position, leading product brands, and accessibility to a sizeable customer and reseller base in the Southern Hemisphere, which mirrors our position in the Northern Hemisphere.

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"Ivan Epstein will continue to lead the team in the Southern Hemisphere. We will be looking to Ivan to continue to grow the business that he has been building for the last number of years in this region," Walker concluded.

Sage is a leading supplier of business management software and related products to small and medium-sized businesses in Europe and North America. The purchase of Softline extends its geographical presence to the Southern Hemisphere, specifically SA and Australia.

Ivan Epstein, Softline's CEO commented: "Softline is entering into an exciting new phase of its growth. With access to the combined research and development, sales and marketing efforts of Sage and Softline, we will be able to continue to extend our presence in key markets, and maintain our ability to offer leading products to customers.

"The realisation of R785 million in cash for Softline shareholders is a significant milestone in the South African IT industry. It is testament to the success of the company over the past number of years, both here in SA and globally, that the world's largest provider of business management software to the SME community has acquired the company."

He continued: "Softline products will continue to meet the needs of local SME businesses and our investment and commitment to our local markets will remain as strong as ever."