What Sage’s Acquisition of Intacct Means for the Software Market

If you haven’t heard the news, international leader in software for accounting and finance Sage recently announced that it was acquiring leader and innovator in the cloud accounting space Intacct for nearly $1B.

The acquisition was announced in a press release on 25 July 2017, and has had profound impacts on the accounting space. Now that the dust has settled, we would like to take a big picture look at the acquisition, the impact for both companies, and why we feel it will be a positive for customers—both potential and current.

Addressing Two Major Needs for Sage

If you’ve paid a lot of attention to the recent financial disclosures of the Sage company, you will know that prior to the Intacct acquisition, the company has seen headwinds in getting on to the cloud. While making some progress with the release of Sage One and X3, but in the words of AccountingWEB Managing Editor Seth Fineberg, “cloud has eluded Sage in that it never built a cloud financial product [on par with a company like Intacct].”

Fineberg goes on to explain just how much of a win this for Sage, in that it continues their successful strategy of growth through acquisition.

Additionally, this acquisition will help both companies compete in markets in which they needed to improve—Sage in the US and Intacct globally.

Expanding the Scope and Backing of Intacct

With Intacct’s history spanning nearly two decades, a majority of its growth came in the last 7 years. In other words, Intacct was so far ahead of its time, it was quietly improving, ready for the rise of “the cloud” in the past few years, as explained in Fineberg’s article:

“[For Intacct] I can’t not see this as a win. I got to know them 15 years ago when I started covering the space, and to their credit they were able to grow steadily in an area that really has only recently been embraced, or at least largely accepted, by accountants … that being “the cloud.””

In 2017, the cloud is quickly becoming the go-to option for finance and accounting, and with this deal, Intacct will have the global backing of a power player—combined with its high amount of loyalty from customers and channel partners.

The Power of Millions, the Continued Innovation of Intacct

As one of the largest international vendors of accounting software and ERP, Sage brings decades of experience in the space and the market presence needed to fuel Intacct and its sellers to the next level. For Intacct, its partners, and its customers, this means more innovation, as well as increased validation that cloud accounting and ERP is the present and future of delivery.

In addition to the major validation that this provides Intacct, the company will still stay true to its heart, with CEO Robert Reid staying on to lead the growth and innovation. At rinehimerbaker, we are committed to providing the same quality service that our customers expect and deserve, and are excited for the road ahead. Learn more about making the most of your growth with the power of Sage Intacct here, and contact us to learn more.