Sage finalises acquisition of Brazilian asset

26th Jun 2012 09:15

Sage Group, the FTSE 100 accountancy software company, has completed its acquistion of the controlling interest in Folhamatic Group, a provider of accounting, tax and payroll and regulatory content software in Brazil. The UK company is paying £125m for a 75% stake in the firm, equating to an enterprise value for 100% of the business, including estimated net debt of £191m. The price values Folhamatic at 13.4 times projected 2012 earnings before interest, tax, depreciation and amortisation, and is expected to immediately enhance Sage's earnings. Return on capital is expected to meet Sage's risk-adjusted hurdle rate in the third year after the acquisition. Folhamatic has a leading market position in a large and growing economy, and its business is highly complementary to Sage's strategy and business model, Sage's statement said. NR/JH