Sage Software to Buy Credit Card Transaction Processor for $325 Million

Published: January 11, 2006

by Alex Woodie

Sage Software yesterday announced plans to acquire Verus Financial Management, one of North America's largest merchant services providers for processing credit card transactions, for $325 million in cash. Verus, which is based in Nashville, Tennessee, has 101,000 customers in the United States, predominantly small to mid-size merchants who are retailers, gas stations, restaurants, property managers, and automotive dealerships. Sage, which is the third largest ERP vendor in the world by revenue, expects to complete the acquisition in February, subject to regulatory approval.

Sage plans to integrate Verus' payment processing service with its accounting packages, which will eliminate redundant data entry. The Irvine, California, software vendor says it has conducted customer trials that show a clear demand for linking payment processing services with accounting software. Many of Sage's 2.5 million customers in North America use its various accounting packages, including the MAS 90, MAS 2000, and MAS 500 ERP lines, Accpac, BusinessVision, PeachTree, Timberline Office, and Simply Accounting. Most of Sage's products run on Windows.