Sage set to acquire Bristol-based Brightpearl

Software firm Sage Group has announced that it is set to acquire Bristol-based multichannel retail management system Brightpearl for £225m. Sage previously held a 17% stake in the company.

Founded in 2007, Brightpearl has operations in the US and the UK and provides a SaaS-based retail operating system. The company is yet to turn a profit, but during its last full financial year (the twelve months to 31st December 2020) Brightpearl generated revenues of £11.4 million, up 36% YoY. For FY21, the expectation is that the company will hit sales of nearly £20.4 million and deliver a breakeven performance.

The Bristol-based company successfully acquired the demand planning tool Inventory Planner in September of this year.

Sage said the combination of its Sage Intacct business and Brightpearl will create a solution for retailers and wholesalers that integrates financial management, inventory planning, sales order management, purchasing and supplier management, Customer Relationship Management (CRM), fulfilment, warehousing and logistics management.

Sage Group Chief Executive Officer, 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.”

Industry Reaction

Oliver Richards, Partner at MMC Ventures, comments: “Today’s acquisition is testament to the growth of one of the UK’s leading tech success stories and a business that has levelled the playing field for retailers online. Brightpearl has transformed the way mid-market retailers, high-growth brands and wholesalers manage their operations seamlessly between physical and e-commerce platforms. MMC Ventures is proud to have supported the business since 2014 when we led the Series A and helped build the team, the board and the growth strategy.”

“This deal closes a hugely successful year for UK tech and MMC Ventures, following the recent acquisition of Interactive Investor by abrdn and prior to that the acquisition of Current Health by Best Buy. We continue to back the most ambitious entrepreneurs across Europe at Series A and look forward to watching the Brightpearl team prosper within Sage.”