THE SAGE Group, the UK’s largest tech company, has acquired Seattle software developer Lockstep as part of its ongoing efforts to capitalise on the fast-paced growth of cloud computing.
The takeover deal will see Sage – a major developer of accounting, HR, and payroll technology – snap up accounting software company Lockstep for an undisclosed sum.
In a statement, Lockstep said the tie-up deal will allow it access to Sage’s resources in its efforts to “accelerate” its ambitions to become the “trusted” provider of accounting technology for small and medium sized businesses.
Launched publicly in 2020, Lockstep employs 130 people in its work developing cloud computing services that automate accounting processes.
The Seattle software developer, which raised $10m in funding in 2021, provides cloud computing services to more than 26,000 businesses.
The takeover comes as part of Sage’s plans to further profit from pandemic related trends towards digitalisation of business processes.
Sage’s revenues have in recent months been bolstered by its cloud business as companies across the globe continue to plough cash into digital transformation projects in completing initiatives first started during Covid-19.
Earlier this month, the North Tyneside firm said its cloud computing division had led to its revenues increasing by nine per cent to £1.3bn.
Lockstep co-founder and chief executive Peter Horadan said: “Over the years it has become abundantly clear that Lockstep and Sage have the same vision for the future of the industry.”
“This acquisition will provide Lockstep with the resources and global reach it needs to accelerate the development of connected accounting.”
Sage’s chief technology officer Aaron Harris said: “The acquisition of Lockstep represents an important milestone in our growth strategy.”