Sage Shows Confidence in Brazilian Software Market
Comment: UK Software companies should take a good look at what Brazil can offer and follow Sage’s lead.
Sage Group the leading British firm supplying accounting software for small and medium sized businesses has just taken their first steps into Brazil by buying 75% of Folhamatic Group for £125m.
Folhamatic, whose revenues were up 13% last year, supplies similar software to the Brazilian market, which is fast growing and relatively undeveloped. Some 90 per cent of the six million small and medium-sized companies in Brazil do not yet use any business software, placing Folhamatic/Sage in a good position.
It will receive 75% of the Folhamatic Group with Folhamatic’s founder and chief executive, Mauricio Frizzarin, retaining the remaining stake in the business and will continue to run it.
Guy Berruyer, the Sage chief executive, said the deal provides the company “with a market leading position in the large and rapidly growing Brazilian market”.
Brazil’s growing economy should encourage other British software creators to enter the market for small business software.