Newcastle-based software giant Sage Group said on Wednesday it agreed to sell its Polish business to funds advised by Mid Europa Partners LLP for about £66 million. 

“In its full year results announcement on 20 November 2020, The Sage Group plc announced that its Polish business was held for sale,” said Sage.

“Sage today announces that it has entered into an agreement for the sale of this business to funds advised by Mid Europa Partners LLP. 

“For the year ended 30 September 2020, Sage’s Polish business achieved revenue of £21m (FY19: £19m) and operating profit of £4m (FY19: £4m). 

“The sale consideration is approximately £66m, payable in cash on completion (subject to a customary net debt and working capital adjustment).  

“The transaction, which is subject to antitrust approval, is expected to complete in early 2021.”

Mid Europa Partners said Sage Poland is a leader in cloud business management solutions for SMEs in Poland, operating under the Symfonia brand.

“The company offers four best-in-class products (Symfonia 50Cloud, Symfonia ERP, Symfonia Kadry i Płace One Payroll and Symfonia Start) to a diversified base of loyal clients,” said Mid Europa Partners.

“Symfonia recently transitioned from a licensing model to a subscription model, achieving robust top-line growth and enhanced profitability.”

Kerim Turkmen, Partner of Mid Europa, said: “We are delighted to be backing Symfonia, a leading provider of business-critical software to SMEs.

“The company already enjoys exceptional brand recognition in Poland while its market leading product portfolio offers highly functional, reliable and modular software solutions.

“We are excited to support the Symfonia team in the execution of future strategic initiatives, including new product development and the expansion of its cloud offering.

“The Symfonia acquisition builds on Mid Europa’s proven track record of investing in CEE-rooted champions in the growth sectors of digital, technology, online and B2B software.

“It adds to our existing investments in intive, and Allegro as well as the recent acquisition of Displate.” 

Marek Rodak, Principal of Mid Europa, added: “We view Symfonia as an ideal entry point into the ERP and Payroll software market in Poland.

“We look forward to supporting the seasoned management team and driving growth organically and through acquisitions, in Poland and internationally.” 

Sage Poland MD Piotr Ciski said: “We are delighted to welcome Mid Europa as a strong and highly reputable investor and look forward to working with them to lead the company through its next phase of growth.

“We believe that Mid Europa’s regional experience, local presence and sector know-how will be instrumental to the Company’s continued growth and success.” 

The transaction was executed by Marek Rodak, Can Karapence, Maciej Michalak and Adam Golos. 

Mid Europa was advised by Arma Partners and VCP (M&A), White & Case (legal), BCG and BCG Platinion (commercial & tech) and PwC (financial & tax).