Sage, a British multinational software firm, signed an agreement for the acquisition of Lockstep. Sage wants to speed up its growth strategies by expanding its digital network and providing more value for SMBs.
Earlier this week, Sage announced the acquisition of Lockstep, an IT solution provider and an AP and AR automation vendor. Neither party disclosed the terms of the agreement. The details are expected to be revealed by the end of September.
Lockstep is an IT solution provider founded by Peter Horadan and Matt Shanahan in 2019. The primary focus of the company is to streamline the processes of accounting and finance teams for invoices, transactions, and payments.
The solution automates the workflows between team members through the inbox. The firm has helped 26,000 businesses connect their teams by utilizing more than 40 integrations.
As a result of the acquisition, Lockstep’s software will become an important part of the Sage Digital Network. However, the agreement doesn’t mean that Lockstep will be deprived of its independence completely.
The acquisition should lead to a significant boost in the automation capabilities of Sage. Moreover, it will expand its network by extending its value proposition of connections across Sage and other third-party systems.
Lockstep has leveraged all of its funding into expanding its team of 130 employees. As a result of the acquisition, all Lockstep employees will transition to Sage.
A reporter asked the Sage if the leadership team was joining the network and what role Peter Horadan would play. “As part of the transaction, Lockstep’s entire employee base, including all key management leaders, will join Sage to help drive the current business and support further development of Sage’s digital network”, the organization replied. “Peter Horadan will report to Sage CTO Aaron Harris and continue to lead the Lockstep team.”
“Over the years it has become abundantly clear that Lockstep and Sage have the same vision for the future of the industry”, Lockstep CEO Peter Horadan added. “Since inception, our mission has been to improve and transform the way companies do business with one another. Together with Sage, we look forward to accelerating the development of connected accounting which is imperative for accountants, finance teams and the companies they serve.”
What happens to Lockstep’s products?
Currently, Lockstep is integrating into different accounting solutions using an automated open API. These solutions include Infor, Epcor, Acumatica, Microsoft Dynamics 365, QuickBooks, Oracle NetSuite, Sage and SYSPRO.
The reporter further asked the Sage network if it would remain a separate firm while supporting and expanding these integrations. “Sage will continue to nurture and support Lockstep’s 40+ accounting solution integrations today for both cloud and on-premise accounting solutions, and we’d expect that number to grow over time”, the organization replied.
The acquisiton’s press release indicates that Lockstep is already integrating with Sage Intacct. What’s the plan for other Sage solutions? “Lockstep currently has integrations with a number of Sage’s US products, including Sage Intacct and X3 in the US, among others, and we will be working through further details post close of the deal, which we expect to take place by the end of September”, the organization said.
Moreover, Sage acquired automation solution ‘AutoEntry’ in 2019. The latest acquisition is said to be a crossover with the AutoEntry. The reporter further asked how Lockstep will adjust with the AutoEntry in Sage’s growth strategy. “Lockstep and AutoEntry both aim to serve similar customer bases, SMBs”, the organization commented.
“Lockstep is specifically focused on AR and AP automation as well as supporting the building of the digital network. Both Lockstep and AutoEntry will be part of Sage’s digital network strategy and will be connected to the network and will enrich the ecosystem with data that automates and facilitates accounting workflows between companies.”
Lockstep makes it possible to connect SME organizations with one another regardless of the platform they use, which leads to the growing importance of the Sage.
“The acquisition of Lockstep represents an important milestone in our growth strategy”, Sage CTO Aaron Harris said. “Its complementary portfolio of products, resources, and know-how accelerates our ambition to be the trusted network for SMBs. Working together, we will continue to knock down the barriers that limit CFOs and accounting teams by streamlining their workflows, improving productivity and efficiency, and enabling them to focus on more valuable, human work.”
This acquisition has expanded the Sage Digital Network, leading it to reach other industries. As for Lockstep, this acquisition provides access to international and lucrative markets.