Enterprise software giant Sage has acquired the remaining stake in Brightpearl, originally a UK-based startup in cloud retail management, for $340m. Brightpearl provides a SaaS-based retail operating system, enabling real-time business insights.
Sage previously owned 17% of the Bristol, UK-based startup, which MMC Ventures, a UK Series A investor, backed in 2014. The startup had previously raised $15m in 2018 and $11m in 2016.
The consideration for the 83% of Brightpearl that Sage does not already own is $299m (£226m), which will be funded from Sage’s existing cash and available liquidity.
Brightpearl CEO Derek O’Carroll said: “Bringing our two teams together will help combine the retail strength of Brightpearl and the scale, brand and financial expertise of Sage.”
In a statement, the Sage said that for the year ending December 2021, Brightpearl is expected to generate revenues of $27m (£20m), representing growth of around 50% compared to the prior year, and to achieve operating profit around the breakeven level.
The transaction is subject to regulatory clearance under the Hart-Scott-Rodino Act in the US, and is expected to close in January 2022.
Steve Hare, Chief Executive Officer of Sage, commented: “Sage’s purpose is to knock down barriers so everyone can thrive. Together, Sage and Brightpearl will remove the barriers that hold back retailers and wholesalers, streamlining their systems and enabling them to focus on growth. I’m delighted to welcome Brightpearl, its management team and colleagues to Sage, and look forward to executing on our strategic priorities together and delivering accelerated growth.”
Writing on linkedIn, former Co-founder Andrew Mulvenna said: “This is a fantastic end to a chapter started 14 years ago when Chris Tanner and I started the business with the vision to help every small retailer digitise their data and workflows and embrace omni-channel retail and become one of the success stories of tomorrow…Our CEO Derek O’Carroll and team have been exceptional, and there are too many others to mention. Their fingerprints are also all over the success enjoyed today.”
Sage previously owned 17% of the Bristol, UK-based startup, which MMC Ventures, a UK Series A investor, backed in 2014. The startup had previously raised $15m in 2018 and $11m in 2016.
The consideration for the 83% of Brightpearl that Sage does not already own is $299m (£226m), which will be funded from Sage’s existing cash and available liquidity.
Brightpearl CEO Derek O’Carroll said: “Bringing our two teams together will help combine the retail strength of Brightpearl and the scale, brand and financial expertise of Sage.”
In a statement, the Sage said that for the year ending December 2021, Brightpearl is expected to generate revenues of $27m (£20m), representing growth of around 50% compared to the prior year, and to achieve operating profit around the breakeven level.
The transaction is subject to regulatory clearance under the Hart-Scott-Rodino Act in the US, and is expected to close in January 2022.
Steve Hare, Chief Executive Officer of Sage, commented: “Sage’s purpose is to knock down barriers so everyone can thrive. Together, Sage and Brightpearl will remove the barriers that hold back retailers and wholesalers, streamlining their systems and enabling them to focus on growth. I’m delighted to welcome Brightpearl, its management team and colleagues to Sage, and look forward to executing on our strategic priorities together and delivering accelerated growth.”
Writing on linkedIn, former Co-founder Andrew Mulvenna said: “This is a fantastic end to a chapter started 14 years ago when Chris Tanner and I started the business with the vision to help every small retailer digitise their data and workflows and embrace omni-channel retail and become one of the success stories of tomorrow…Our CEO Derek O’Carroll and team have been exceptional, and there are too many others to mention. Their fingerprints are also all over the success enjoyed today.”