Sage Group, the Newcastle-based international software giant for SMEs, said on Monday it agreed to buy the 83% of Brightpearl it does not already own for $299 million.

Sage Group provides accounting, financial, HR and payroll technology for small and mid-sized businesses.

Brightpearl, based in Bristol, UK, and Austin, Texas, provides a retail operating system (ROS) for retailers and wholesalers.

Brightpearl’s ROS includes financial management, inventory and sales order management, purchasing and supplier management, CRM, fulfillment, warehouse and logistics.

“The acquisition of Brightpearl, in which Sage already has a 17% minority stake, accelerates Sage’s strategy for growth, including scaling Sage Intacct, broadening the value proposition for mid-sized businesses and expanding Sage’s digital network,” said Sage.

“With operations in the US and the UK, Brightpearl provides a SaaS-based retail operating system, enabling real-time business insights and helping customers automate workflows to save time and money.

“The combination of Sage Intacct and Brightpearl will create a powerful solution for retailers and wholesalers which integrates financial management, inventory planning, sales order management, purchasing and supplier management, CRM, fulfilment, warehousing and logistics management. “

For the year ending December 2021, Brightpearl is expected to generate revenues of $27m, representing growth of around 50% on 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.

Sage CEO Steve Hare said: “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.”

Brightpearl CEO Derek O’Carroll said: “We are thrilled to be joining Sage.

“Bringing our two teams together will combine the retail strength of Brightpearl and the scale, brand and financial expertise of Sage, enabling us to offer customers the most innovative financial and retail operating solutions so they can grow fearlessly, save time and deliver outstanding experiences.”