Intacct is a pioneer in the cloud ERP space. Founded in 1999, they were one of the first companies to launch a full-featured accounting software application built exclusively for the cloud and as an alternative to traditional on-premises accounting applications.
Since then, Intacct has grown the company and their customer base to become one of the top, most recognize cloud accounting software providers on the market today.
Why Did Sage Acquire Intacct?
It's no secret that the cloud is the future of ERP. This acquisition accelerates Sage’s cloud-first strategy and captures momentum in the growth opportunity that exists with cloud accounting applications.
In short, it was likely easier and more cost-effective to purchase an existing market leader with a record of success than to build a new cloud-only application from scratch.
Is Intacct Redundant to Sage's Existing Products?
Not really. Sage has stated that Intacct is complementary to their existing product portfolio and we tend to agree.
Sage has a long and rich tradition of quality, market leading on-premises ERP applications. In recent years, they've moved some of those applications toward the cloud where what they have today could be described as a hybrid - a mix of on-premises and cloud or web-based apps that work hand in hand.
Contrast that with Intacct who is and always has been, from inception, cloud first and cloud only.
What Does the Acquisition Mean?
This acquisition provides Sage with a significant opportunity for new customer acquisition from start-up to enterprise. With existing on-premises / hybrid cloud solutions for existing customers combined with modern cloud solutions for new customers, Sage can offer and support a complete portfolio for a range of needs which provides competitive advantage.
In short, existing Sage customers continue using the products they already know and love while Sage can also grow their new customer base which increasingly gravitates to the cloud.
Will There Be Changes in Executive Leadership?
No. Sage has stated that for now, it will be business as usual. Intacct will continue to operate as a separate entity and the management team will stay in place. The leadership teams for Sage and Intacct will work closely together to continue delivering top quality software products and support.
Will Sage Continue to Invest in its Existing On-Premises Products?
Yes. Sage has stated that they remain committed to on-premises customers and supporting those products until they are ready to move to the right Sage cloud solution. In fact, Sage has invested heavily in the last 12 months in the “c-line” which represent revamped, modernized versions of the traditional on-premises products and will continue to do so.