Sage Share Discussion Threads

[lyntwyn] 30/3/2006 09:28

Trading update was 13/04 last year, so should be soon. Will look forward to that!

[johnsmithbillion] 29/3/2006 13:40

Should be a trading update in a couple of weeks. With business confidence picking up in Europe and globally, surely this is going to be positive news...

[maddox] 23/3/2006 17:56

Yep, another excellent move consistent with Sage's strategy.

There is some nice financial alchemy that comes into play here. Sage is on a p/e of 25, whereas the takeout price for Visma is equivalent to a p/e of 15. However, the market will tend to price the acquired earnings from Visma at 25 (as part of Sage) immediately adding value.

The increasing size of the acquisitions being made is ramping up the rate of growth nicely.

Pure class.

Maddox

[lyntwyn] 23/3/2006 15:53

Plenty of folk like SGE out there!! We don't want MSFT to get their hands on this jewel. SGE going to be a huge company.

"The deal is consistent with Sage's strategy to expand geographically," Shore Capital analyst George O'Connor said. "While it is a size bigger and a bit pricier than recent deals it is well within Sage's comfort zone." O'Connor said he expected to increase his full-year profit forecast for Sage to 246.8m, from 233m currently, but retained his 'buy' rating.

Credit Suisse estimated that Sage's latest acquisition could increase earnings by between 4-5% in the first year. The investment bank retained its 'outperform' rating on the stock.

[sks999] 22/3/2006 14:55

well received by market which is good

[johnsmithbillion] 22/3/2006 11:52

Poor old Microsoft are having to delay the launch of Vista, while Sage is roaring ahead with the acquisition of Visma ;)

[johnsmithbillion] 22/3/2006 10:53

At 15x operating profits Visma shareholders are surely getting a good price, while the better management of Sage should be able to ramp up the margins as they have done consistently before, and expand the business. IMO it looks like a tremendous deal, boosting Sage's presence and scale while leveraging the balance sheet.

[lyntwyn] 22/3/2006 09:17

Just hope they're not moving so fast on takeovers that they won't be able to absorb them properly!

Looks like the market likes it.

LONDON (AFX) - Sage Group PLC said it has agreed to buy Norwegian business
software group Visma ASA for about 334 mln stg in cash, marking the accounting
software company's biggest acquisition yet.

"The proposed acquisition of Visma is consistent with the Sage strategy of
expanding geographically into new and attractive markets," Sage chief executive
Paul Walker said.

"We see significant potential to build on Visma's leading position in the
Scandinavian SME market."

The 125 nkr per share offer, which represents a 19 pct premium to Visma's
average price over the last 20 days, is still subject to the completion of due
diligence but is being recommended by Visma's board.

Sage, which is facing growing competition from Microsoft and other suppliers
for the SME business software market, is looking to boost its steady growth rate
through acquisitions.

In January Sage bought US payment processor Verus Financial Management for
about 184 mln stg.

Visma, which like Sage makes accounting software and runs companies'
administrative and financial functions, has some 200,000 customers. Visma had
revenues of about 166 mln stg in 2005, an increase on 2004's 145 mln.

It made an operating profit before depreciation and goodwill amortisation of
about 22 mln stg in 2005, up from 20 mln a year earlier.

Visma chief executive Oystein Moan said: "To a large extent Visma
supplements Sage and there is very limited overlap in the two companies' market
positions."

In a conference call with reporters Walker said the Visma acquisition would
help Sage expand into the Swedish market, Scandinavia's biggest economy, and act
as a "bridgehead" into the Baltic countries.

Norway accounts for 61 pct of Visma's revenues followed by Sweden (25 pct),
Finland (9 pct) and Denmark (5 pct).

"There are about 2 mln SMEs in the Scandic markets and we see an opportunity
to expand our presence in the Swedish market," Walker told reporters. "We see
significant upside potential for moving Visma more into the mid-market."

"I do think this is a nice way to extend our presence in the Baltic markets.
Visma has started already and we do see this as a beach-head into the Baltic
market."

Sage chief financial officer Paul Harrison said Sage still had a "reasonable
amount of headroom" for making further acquisitions helped by earnings before
interest tax and depreciation from recent acquisitions and cash generated by the
business.

North America and mainland Europe will be priorities for future
acquisitions, Walker added.

[johnsmithbillion] 22/3/2006 08:25

Now buying Visma for £334m, or about 2x sales, when Sage is trading on about 4.6x sales looks like another brilliant Sage acquisition!!!!!!!

[jimcocallis] 21/3/2006 00:42

Sold it - banked profits. Will take it up again. 1 day 5% - luvly. I hope MS don't take it over - they will make a pigs ear of it. You only have to look at MS exp for- ranting sorry.
IMHO DYOR
obfuscation is the MS way.

[Abuse team] 18/3/2006 01:10

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[johnsmithbillion] 17/3/2006 16:44

1 am still hoping they will come down so i can buy some more at a cheaper price

[don one] 17/3/2006 16:10

i hope they do it will make the shares go right up

[don one] 17/3/2006 16:10

i hope they do it will make the shares go right up

[johnsmithbillion] 17/3/2006 08:07

I hope Microsoft doesnt buy Sage - Sage is such a good company in its own right

[ruma_munger] 16/3/2006 23:30

Perhaps Microsoft could do with Sage for the complete package...





Microsoft targets business users

Steve Ballmer wants firms to use more Microsoft software
Microsoft intends to spend $500m (£285m) marketing its software systems to business users over the next year.
Aiming to win trade at the expensive of IBM, the announcement was made by chief executive Steve Ballmer.

He said the firm's latest Microsoft Office and Windows Mobile systems meant companies could now do the tasks they previous paid IBM to do for them.

IBM dismissed Microsoft's announcement as "window dressing", saying it wasn't driven by consumer needs.

'Empowerment'

Mr Ballmer was speaking at a press event in New York.

"Getting the most out of their people is on the mind of every business leader I speak with," he said.

"[We] are passionate about the idea that the right software can provide the tools to empower workers to become the drivers of business success."

IBM responded by saying Microsoft's plans were "product-driven instead of customer-driven".

"It's clear, our survey of some 700 chief executives indicates that business process and business model innovation is what matters most to clients, and that can't be achieved by another proprietary piece of software," IBM added.

[Abuse team] 15/3/2006 17:48

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[johnsmithbillion] 15/3/2006 17:47

if the trend continues she has to break through 285 level to a new post-crash high, could be just a matter of days!!!!!!!!!!!!!!!!!!!

SAGE is a fabulous company!!!!!!!!! I love SAGE!!!!!!!!!!!!!! My favourite company of all!!!!!!!!!!!!!!!!

[lyntwyn] 15/3/2006 13:25

can't see SGE charging anywhere for a while, pending interims; consolidation more likely for now methinks. Could touch mid 280s though, recent high.

[johnsmithbillion] 14/3/2006 16:29

and very nice move up today, as FTSE is down!!!!!!!!! could be about to charge!!!!!!!!!!!!!!!!!!!!!!!!!

[johnsmithbillion] 14/3/2006 09:50

OK jim or jimco - excellent post! agree entirely!

Hence me in and in:-:-)

[jimcocallis] 14/3/2006 01:50

OK Lyn or Lynt - I ask you why a US co would be supported on the us exchange -in the USA! If you start from 1 and go to 1.3 - massive growth!!!! R thy making commensurate profit? I ask you.
Could Intuit be the target for Sage - no, no reason for taking on that overmanned group and Sage has a much better product ---- good online income.
Loved this - "that the one issue it has is that investors are asked to pay quite a high multiple to enter this investment story" - why - Sage delivers!

Microsoft s'ware was dross - Intuit nearly the same. Both companies produce disjointed, leaky software - OK for non finacial people, but, money matters.

At the moment shares r - yoyo - I wish I had bought them at the start and still held them today!
Me in and out:-:-)

[lyntwyn] 11/3/2006 11:48

10.03.06 :-1.25, (273.25) concerns over competition from US peer Intuit and cautious comments on valuation by Merrill Lynch, dealers said. Shares in Intuit rose sharply last night after the financial-software company raised its third-quarter forecasts on stronger-than-expected sales of its TurboTax line. The news sent Sage shares 7-1/4 pence lower to 267-1/4 in early afternoon trade amid concerns that Intuit was increasing its share of the US accounting software market at the expense of Sage. Merrill Lynch meanwhile, repeated its 'neutral' stance on Sage today, following a visit to the group's headquarters in Newcastle. The US broker said it believes the company can continue to grow steadily through organic growth and add-on acquisitions and sees Sage's competitive position as stable and improving as markets continue to consolidate. It noted however, that the one issue it has is that investors are asked to pay quite a high multiple to enter this investment story, pointing out that Sage is trading at a premium to the other software heavyweights Microsoft and Oracle.