Accountancy software firm Sage has launched a #78 million takeover bid for rival firm Tetra.
The offer, which has already been approved by Tetra?s board, is around 63 per cent higher than the company?s market value at the end of January.
According to Newcastle upon Tyne based Sage, it is experiencing increased demand from its customers and resellers to provide an offering in the mid market and the acquisition of Tetra would provide the necessary management, expertise, established channel and product range to satisfy this demand.
Tetra?s main product offering, CS/3, is a client server based business and accounting software system which is available on Microsoft Windows NT as well as all major Unix platforms and can be implemented to run with databases from Microsoft, Oracle and Informix.
Sage chief executive Paul Walker said the deal fits the company?s strategy of targeting larger customers.
He commented: ?This is a significant step forward for Sage, as part of our strategy which is focused on supporting businesses from the entry level to the mid range market."
"The acquisition of Tetra and its Tetra CS/3 finance, distribution and manufacturing software will satisfy both our growing medium sized customers, who have been demanding more sophisticated products, and our top resellers who want a mid market offering.?
Only last month, Sage acquired US accountancy software firm Peachtree for around #88 million.
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