Irvine, Calif. (March 10, 2004) -- The Sage Group, which operates in the United States under the name Best Software, has completed its acquisition of rival accounting software vendor, Accpac International.
The deal, worth $110 million in cash, involved the sale of Computer Associates' 90 percent ownership of Accpac, along with stock held by executives, including former president Frederic Wysocki. CA is recording a pre-tax gain on the deal of about $88 million. Wysocki, who was fired in 1999, held 105,000 shares. Best has not finalized the reporting structure for Accpac. Currently, Accpac president David Hood reports to Ron Verni, chief executive of Best’s U.S. Operations.
Accpac had net income of $5.4 million on sales of $88.7 million for the year ended March 31. Computer Associates expects Accpac will finish 2004 with $105 million in revenue. For the nine months ended Dec. 31, CA reported that Accpac had profits of $1 million, down from $3 million for last year’s corresponding period. Revenue for the first three quarters of fiscal 2004 was $78 million, up from $63 million a year earlier.
--WebCPA staff
