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SAGE 3Q GROWTH 6.5 PERCENT Featured

Stephen Hare, IntacctSage's organic revenue growth was 6.5 percent for the third quarter ended June 30. That was part of the trading update for the quarter issued this week and generally drowned out by the company's announced purchase of Intacct.

CFO Stephen Hare said that with North American Payments included—which is being spun out—that drops to 5.7 percent. Take out France and organic growth was 7.6 percent. The comments were made during this week's webcast of the update. European companies typically do not provide actual revenue and earnings figures for the first and third quarters. "The U.S. has started to show some encouraging signs of recovery led by X3," Hare noted adding, "We are confident of the accelerating growth in North America." Intacct, which had $88 million in revenue for the 12 months ended June, will help the top line. It will not improve the bottom line. "It will remain loss-making for several years," CEO Stephen Kelly said during the webcast. Kelly noted Sage Live has an average contract value of $3,000 to $7,000 and currently has 1,000 subscribers. Some expect Sage to kill Live and ride Intacct. However Kelly said there is little overlap with Intacct, which he called "a good fit". Kelly noted plans to take Intacct to a broader market. "Once we have integrated and established business in the USA, in the mid-term we have plans to deploy sage Intacct across our other major English-speaking geographies," he said.

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