Stop me if you’ve heard these two words used frequently in the same sentence recently.
Could rumors of a Sage acquisition be true? No doubt.
But they also could have been true the last half-dozen times they were circulated.
The better question is — if these rumors are true then what would the acquirer want with Sage’s mixed bag of products?
– Sell off the individual products
– Collect the maintenance revenue stream
– Incorporate the products into existing technologies
– Farm the existing customer base for migration to another product based on SaaS, etc.
– Hope there’s some secret “instant upgrade/migration” tool that can be developed to remove the barrier of switching and then switch existing customers to a new solution
Of all of the above I’d think an acquisition by an investment company would make the most sense and would also be to farm the maintenance revenue stream.
I still have to squint a great deal to see how such a takeover makes a lot of sense for anyone but investment companies looking to break up the company and sell pieces of it or farm maintenance.
And if that were easy to sell off the individual products at a profit — wouldn’t Sage have started the “sell off” part already? Or maybe Sage have already started thinking that way – and the warmup for this was step one of getting everyone ready for the next stage.