LONDON, UK: The Sage Group plc (FTSE: SGE) has agreed to acquire Lockstep, a provider of cloud native technology that automates accounting workflows between companies.

The acquisition of Lockstep accelerates Sage’s strategy for growth by broadening its value proposition for SMBs and by expanding Sage’s digital network.

Headquartered in Seattle, Washington (US) and employing over 130 colleagues, Lockstep develops products and services that streamline accounting processes, allowing customers to save time, eliminate human error and improve cash flows.

Its solutions include applications to automate accounts receivable and accounts payable workflows, deepening Sage’s capabilities in the office of the CFO, while its API platform expands the ecosystem by enabling third parties to develop connected services.

Today the Lockstep platform enables network connections into more than 40 different accounting solutions, and over 26,000 businesses are already part of its ecosystem.

The acquisition is aligned with Sage’s ambition to be the trusted network for SMBs. It accelerates the expansion of Sage’s digital network by enabling and enhancing connections between businesses and their customers and suppliers.

As part of the transaction, Lockstep’s highly experienced management team will join Sage to help drive the development of Sage’s digital network.

The acquisition does not affect Sage’s previously communicated financial guidance and is expected to close by the end of September.

Aaron Harris, Chief Technology Officer of Sage, commented: “The acquisition of Lockstep represents an important milestone in our growth strategy. 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.”

Peter Horadan, Chief Executive Officer of Lockstep, commented: “Over the years it has become abundantly clear that Lockstep and Sage have the same vision for the future of the industry. 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.”

Sage exists to knock down barriers so everyone can thrive, starting with the millions of small and mid-sized businesses served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitising business processes and relationships with customers, suppliers, employees, banks and governments, our digital network connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology and experience to tackle digital inequality, economic inequality and the climate crisis.

Lockstep connects the world’s accounting teams to help them work better together. The pioneer in Connected Accounting, Lockstep develops tools and platforms for fintech developers and accounting teams to automate workflows between the accounting systems that are at the heart of all businesses. For developers, Lockstep API is the easy, modern platform for building fintech applications that work with their customers’ accounting systems.

For accounting teams, Lockstep’s applications automate accounts receivable and accounts payable workflows improving efficiency and cash flow. Based in Seattle, Lockstep has won numerous awards including the 2022 BIG Innovation Award and 2021 Top Cash Management Solution by CFO Outlook.