Sage Group, the British business software vendor, said Thursday it will buy Bäurer, a business management software company, for £16 million ($29.8 million).
The cash acquisition of Bäurer will help strengthen Sage's market position in Germany, Sage Chief Executive Paul Walker said in a statement. Bäurer makes advanced business management software for about 2,000 midmarket customers, Sage said.
By buying Bäurer, Sage will have access to the "bedrock" of the German economy: midmarket manufacturing companies, said David Bradshaw, principal analyst for Ovum in London. The acquisition continues moves by Sage to bolster its position throughout Europe, he said.
"They are definitely looking to expand further in Europe," Bradshaw said.
Sage, which has 10,000 employees worldwide, produces accounts, payroll and CRM (customer relationship management) software for small to medium-size enterprises. For fiscal 2005, Sage reported a profit of £143.5 million.
Bäurer's revenue for the year ending Dec. 31, 2005, was £16 million, with earnings before depreciation and amortization of £1.2 million.