Sage adds up threat from Redmond

Sage, best known as a supplier of accountancy software, has met analyst expectations in posting six month profits up 10 per cent from £40.8 million to £44.9 million.

Sales of services and software to Sage's existing SME client base remained buoyant, and helped compensate for the company's difficulty in attracting new business.

Revenues for the six month to March 31 came in £279.8 million up at 22 per cent on the £229.6 million in recorded during the same period last year. So grounds for cautious optimism but Sage, which bought seven companies over the past year, would be well advised to keep a watchful eye towards Redmond, as Microsoft acquires firms that make it a stronger competitor in the segment.

Last year Microsoft bought Great Plains Software and reportedly plans to further boost its portfolio in the area with the acquisition of Navision Damgaard. Negotiations are at an advanced stage, reports, on a deal worth an estimated $1.2 billion.

News source: The Register - Sage adds up threat from Redmond

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