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Cloud-Based HR Platform CakeHR Acquired by Sage

December 10, 2019

U.K.-based enterprise software provider Sage announced earlier this week that it has acquired CakeHR to bolster its cloud offerings to small businesses and advance its vision as a SaaS industry leader. 

Also based in the U.K., CakeHR, founded in 2012, is a completely cloud-based HR management platform with modules such as timesheets, expenses, onboarding, and shift scheduling, to simplify and automate various HR tasks. CakeHR hopes that being part of Sage will create a faster platform, more tools, better support, and better overall results. They will continue to service its 27,000 users in more than 50 countries until 2020, before being offered to Sage’s existing U.K. customers. 

Screenshot of CakeHR user interface

Source: cake.hr

This isn’t the first time this year we’ve seen acquisitions between the HR and accounting industries. In January, Sage sold its U.S.-based payroll business, Sage Payroll Solutions, to iSolved HCM, a human capital management company based out of Charlotte, NC. In the past, accounting and HR systems were kept separate, but companies are now realizing that integrating the two can be beneficial. If companies are able to integrate the two types of software, accounting and finance teams can better manage how labor is affecting sales, how turnover is affecting the bottom line, and how recruiting is affecting overhead expenses. 

CakeHR’s open application programming interface allows other platforms and apps to integrate with its software, as well as services from the Sage marketplace and Sage’s payroll solutions.  Sage believes that “building and acquiring great technology to help accountants and businesses focus on what matters most is a critical part of Sage becoming a great SaaS company.” 

CakeHR continues, “By combining our experience and expertise with Sage, CakeHR will be able to further its vision of providing an easy-to-use, powerful, and always-accessible HR platform for any organization.”  

Financial terms of the deal were not available, but CakeHR employees will join Sage at the close of the deal. Lee Perkins, chief product officer at Sage, said that, “We have been hugely impressed with the people and technology at CakeHR, particularly their ability to enable employees to self-manage, and are delighted to welcome them to Sage.”

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