Sage's Softline purchase gets go-ahead

By Tracy Burrows for Sage Enterprise

Johannesburg, 10 Nov 2003

SA-based accounting software company Softline has announced the completion of its acquisition by Sage Group, following Competition Commission and Exchange Control approval.

In September, shareholders voted to accept Sage's offer of R2 per share.

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

Softline was founded in 1988 by Ivan Epstein, Steven Cohen and Alan Osrin, and has grown from a R5 000 start-up to a company with an established global position extending into the Australian and North American markets.

Softline says Sage's R785 million cash purchase makes this transaction one of the largest foreign IT investments into SA in the past year and demonstrates confidence in the strength, viability and potential of Softline and its management.

The Softline Group says in a statement that all its operational activities will continue as usual. All product brands belonging to the Softline portfolio, including Pastel, Brilliant and VIP software, will continue to operate.

The existing Softline management team will continue to run the group's operations.

"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," says Paul Walker, Sage CEO.

Sage supplies business management software and related products to small and medium-sized businesses in Europe and North America. The Softline purchase extends the company's geographical presence to the Southern Hemisphere, specifically SA and Australia.

"The realisation of R785 million in cash for Softline shareholders is a significant milestone in the South African IT industry," says Epstein. "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."