With cloud’s adoption rate rising day-by-day, more and more businesses of small and medium scale are entering in the cloud. Cloud-based accounting market is taking a decentralized approach. Latest trend taking center stage in accounting technology is the workflow automation. The shift towards cloud-based platform enables the software to focus on workflow systems by automatically reading the receipts, turning it into data, entering them in books and assigning it to account; thereby saving time for manual bookkeeping. Cloud technology gives more flexibility to the manpower, i.e., the accountants with their own time. This enables them to add in extra services and append a value to the business.
The Sage Group announced the acquisition of Intacct Corporation, leading provider of cloud financial management solutions to budding businesses looking for rich financial-operational insight, process automation, and seamless integration. The prime advantage to Sage by this acquisition is opening up of doors to huge opportunities in the North American accounting technology market, representing over half of Sage’s total addressable market of cloud solutions in accounting market.
Since Sage is a provider of accounting and business management solutions to small businesses and Intacct’s customer base is mid-size, large as well as global companies; the merger is majorly pointing towards Sage’s strategy to expand it’s accounting services. Acquisition of Intacct will support Sage’s accelerated growth prospects by winning new customers to strengthen Sage Business Cloud. The acquisition will help Sage to gain significant traction in North American online accounting market. It will also help providing Sage with an out-of-the-box product that stands apart from its competitors from the same niche like QB Online and Xero.
The merger further reflects larger transitions in the accounting technology landscape. The acquisition focuses on innovating within the space and keeping them at the forefront of the rapidly evolving market of accounting technology. Accountants need to embrace the rapid advances in the accounting technology industry if they wish to remain relevant in the accounting industry. Staying up-to-date with the latest technological trends, optimizing and adapting current accounting software to meet needs and accepting to learn advancing technologies is inclusive to this process.
The aftermath of the merger reflects a much larger as well as stronger range of solutions for accounting needs and it fills those needs for a native cloud product for the creation of a complete set of offerings. Almost all of Sage’s cloud-based products are hosted applications and since hosted applications can be perfectly acceptable, companies went on the lookout for a SaaS option. Acquisition of Intacct allows Sage to own the most dominant SaaS product in the market of accounting technology in the U.S.
Acquisition of Intacct has opened up doors for Sage into accounting and bookkeeping services on cloud platform along with expansion into the cloud-based higher – level advisory services being already provided by Intacct. Sage 50, a cloud-based product of Sage has been surpassed by Sage Intacct (a product developed after acquisition) which, comparatively, is more robust and mature online accounting technology and financial management product.
The class most affected by the acquisition is that of accountants; they should expect a transition period as Intacct’s team is being integrated into Sage’s global product management infrastructure, strengthening Sage’s position as a provider of the first and last cloud financial management solution while covering a journey from start-up to a global enterprise. History has witnessed acquisitions resulting in stripping, assets’ milking and downsizing of the target enterprise but this case serves as an exception where Intacct will continue to operate essentially as before – but with access to greater resources.
The acquisition of Intacct by Sage will lead by example into providing a unique environment of cloud-based accounting technology-enabled services to a diverse class of clientele where employees, customers, and stakeholders co-exist to deliver/benefit from outstanding products in the accounting technology market.
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