Sage Group Plc · LSE:SGE
Sage — The Sage Group — Merger or Acquisition (July 2017)
15 slides from Sage's merger presentation, Jul 25, 2017
Slide 1: The Sage Group plc Acquisition of Intacct Corporation
[Draft] The Sage Group plc Acquisition of Intacct Corporation The Sage Group Stephen Kelly, CEO Plc Steve Hare, CFO Acquisition of[x]Intacct July 2017 Corporation Stephen Kelly, CEO Steve Hare, CFO 25th July 2017
Slide 2: Disclaimer
Disclaimer This document has been prepared by The Sage Group plc (Sage). It is a presentation of general background information about Sage’s activities current at the date of the presentation. It is information in a summary form and does not purport to be complete. It is to be read in conjunction wi
Slide 3: Context of the Acquisition
Context of the Acquisition Transformation Why the acquisition of Intacct makes sense now • Significant progress made in reducing overhead cost and reinvesting to • We now have the leadership, organisational alignment, brand and ability to drive increased quality of revenue, whilst maintaining growth
Slide 4: Intacct Highlights
Intacct Highlights Company Overview Financial Snapshot • Founded in 1999 and headquartered in San Jose, California • Largest independent cloud Financial Management Solutions Net $ Revenue(2) Subscription provider worldwide, with demonstrated track record of strong Renewal(4) $88m >90% growth >107% •
Slide 5: Transaction Summary
Transaction Summary • Acquisition of Intacct Corporation, largest independent cloud Financial Management Solutions provider, with Transaction Outline demonstrated track record of strong growth • Transaction value of $850m (£654m(1)), to be paid in cash and rolled-over Sage options(2) • Demonstrates
Slide 6: Strong Growth Profile
Strong Growth Profile Highlights • With revenues of $88m(1), Intacct has been consistently delivering revenue growth in excess of 30% • Intacct’s solutions are only sold on subscription, with over 90% of revenues subscription-based • Intacct sells through both direct & reseller channels as well as t
Slide 7: Compelling Strategic Rationale
Compelling Strategic Rationale • Enhances Sage’s ability to benefit from the accelerating move to the cloud within the growing $9bn North American market segment, where over half of our total addressable market is located, for Financial Management Solutions used by scale-up and enterprise businesses
Slide 8: Compelling Strategic Rationale (Cont'd)
Compelling Strategic Rationale (Cont’d) • Fastest growing independent cloud Financial Management Solution in North America Platform for Market • Intacct team brings significant expertise in building and scaling a cloud business Leadership • Opportunity for Sage in North America as a leading provider
Slide 9: Delivering Results for Customers
Delivering Results for Customers Empowering the From Scale-up to Delivering 250% Finance Global Enterprise ROI & Professional 6 month payback “Intacct has supported us as “Because of the efficiency and visibility I “Intacct is the perfect partner to we’ve expanded to over 20 have in Intacct, I’ve be
Slide 10: Intacct Strengthens Sage's Strategic Pillars
Intacct Strengthens Sage’s Strategic Pillars • Demonstrated ability of winning customers at scale in the US Winning in ✓ • Strong team with a solid track record of beating the competition who will continue to the Market lead the business • Position Sage as a leading provider of cloud Financial Manag
Slide 11: Q&A
Q&A © 2017 The Sage Group plc or its licensors. Sage, Sage logos, Sage product and service names mentioned herein are the trademarks of The Sage Group plc or its licensors. All other trademarks are the property of their respective owners.
Slide 12: Appendix
Appendix © 2017 The Sage Group plc or its licensors. Sage, Sage logos, Sage product and service names mentioned herein are the trademarks of The Sage Group plc or its licensors. All other trademarks are the property of their respective owners.
Slide 13: Powerful Cloud Financial Management Solution
Powerful Cloud Financial Management Solution • ‘Born in the cloud’ Financial Management Solution targeted Industry Specific Solutions at CFOs and financial Accounting Healthcare Services professionals looking for a sophisticated and powerful Franchise Hospitality Software & SaaS solution Financial N
Slide 14: Partnering for Success
Partnering for Success • Over 200 marketplace partners whose solutions integrate seamlessly with Intacct’s cloud Financial Management Solution • 75% of customers integrate with 2+ partners • API-first(1) strategy, focused on enabling seamless integration • Over 50% of transactions are posted through
Slide 15: Strong Track Record of Innovation
Strong Track Record of Innovation • Pure cloud, multi-tenant solution • Configuration only – no customisation, single code base • Support for major browsers, operating systems and any device • Flexible API architecture with 12 years backward compatibility • Highly scalable, able to serve large Enter