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Sage and UNIT4 fight over Polish software house

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23rd Jun 2010
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Acquisitive UK business software giant Sage is on the prowl again, gazumping its rival UNIT4 with a £41m bid for Polish ERP and HR software developer Teta.

Teta supplies business software and services to mid-market companies in Poland and Hungary and is listed on the Warsaw stock exchange. In the year to 31 December 2009 it made a before-tax and interest profit of roughly £3m on a turnover of £21m.

Sage’s bid values Teta shares at PLN 12.75 in cash, a 15% premium on the company’s average share price between March and June and 1PLN more than UNIT4’s offer. The payment will be met out of Sage’s existing debt facilities, the company said.

If Chancellor George Osborne were looking for optimistic portents following his austerity Budget on 22 June, he would have been reassured to see Sage on the M&A trail again. The only software company in the FTSE100, Sage has grown into a major conglomerate through an epic sequence of acquisitions. The bid for Teta is the first sign of a return to its expansionist ways since the global economic crisis hit in 2008.

In what could be the last of many similar statements, soon-to-retire Sage chief executive Paul Walker said Teta would complement the company’s existing business in Poland. “By joining these businesses together we can offer our customers a richer portfolio of products and services, and further develop our offerings in the attractive eastern European markets,” he said.

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