Exclusive: Sage rumoured to be in acquisition talks with IBM and SAP

A Sage insider tells Computing that the business needs more collateral and capital

UK-based business and software services company Sage is rumoured to be in discussions with both IBM and SAP regarding a potential acquisition.

A Sage insider told Computing that the company is in "talks" with both vendors, and that being part of a larger organisation would "benefit the business".

"We are in a period of reflection at Sage," he said. "The company is looking to double our customer base in five years, which is quite a challenging path."

"The structure of the organisation holds us back, and we would certainly benefit from more collateral and capital expenditure".

The source believes that being acquired by SAP or IBM would help to streamline internal processes and potentially fund a restructure.

"I don't think there is anything wrong with the Sage brand in the market. We might just come under SAP's or IBM's remit and operate on their accountancy books, but continue business as normal," he added.

Sage was unwilling to comment on the rumour, as was the managing director of Sage's UK partner, Datel.