Softline (South African software company)

Last updated
Softline
TypeSubsidiary
Industry Software
Founded1988 (1988) [1]
Founders
  • Ivan Epstein
  • Alan Orsin
[1]
FateNow operates as a division of Sage
SuccessorSage South Africa
Headquarters
Johannesburg
,
South Africa [2]
ProductsAccounting and Payroll products
Parent Sage Group
Website www.sage.com/en-za/

Softline was a South African enterprise software company that existed as an independent company between 1988 and 2003 when it was acquired by the UK-based multinational corporation The Sage Group plc. [3] Sage continued to use Softline as a brand name until 2013 when all of Softline's products were re-branded as Sage. [4]

Contents

Sage's South African business continues to provide Sage's global products as well as local South African solutions that cover accounting, ERP, Payroll and HR, Business Intelligence, customer relationship management and retail software solutions to small, medium and larger sized companies in South Africa. [5]

History

Softline was founded by Ivan Epstein [6] and Alan Osrin in 1988 during the formative years of the software industry [7] with a mere R1,500 loan. The two founding members of Softline were soon joined by local entrepreneur Steven Cohen in 1990. [7]

By 1993, more than 20,000 South African businesses were utilising Softline's Brilliant Accounting products aimed primarily at medium-sized enterprises. In 1994, Ivan Epstein secured a long-term agreement with Intuit, granting Softline exclusive distribution rights to the Intuit range of products in Southern Africa; Intuit acquired the South African business back from Softline in 2006. [8]

Softline experienced growth during the 1990s and by 1995 began to actively pursue the implementation of Softline's listing in the Johannesburg Stock Exchange. During this time, Softline's reseller base extended into Africa. On 19 February 1997, Softline Limited listed on the Johannesburg Stock Exchange with a market capitalization of R250m (£20m). [1]

In October 1997, the black empowerment group Hosken Consolidated Investments (HCI) acquired 20% interest in Softline. [9] In a back-to-back transaction, Softline acquired 60% of US-based SVI Holdings Inc., for R150 million. [10] This transaction marked Softline's entry into international markets. [11] At this time, SVI had operations based in the US and Australia. [11] SVI Holdings Inc. had previously acquired Divergent Technologies Pty Ltd Propriety Limited in Sydney, Australia in October 1996, [11] Applied Retail Solutions in San Diego, California to enter the point of sale market in the USA in July 1998 [12] and Island Pacific Systems in Irvine, California, a leading retail applications' software group in the USA candour in July 1999. [13] In July 1998, SVI transferred its listing to the American Stock Exchange (AMEX:SVI). [10]

Sale to Sage

In 2003, Softline was delisted from the Johannesburg Stock Exchange to be acquired by The Sage Group plc, one of the leading providers of business management software and services to SME's. [3]

In 1989, Alan Ware and Jeremy Waterman established LA Technology, the distributor for Accpac International throughout sub-Saharan Africa. [14] LA Technology was later acquired by Accpac International in 2000 and became known as ACCPAC Africa. [14] In 2004, ACCPAC Africa was acquired by the Sage Group plc from Computer Associates [15] and was renamed Softline Accpac. [16]

In May 2010, Softline announced the acquisition of Netcash (Pty) Ltd, [17] a company that provides transaction processing services that was founded in 2002. [18] Softline integrated Netcash into their accounting and payroll products. In 2013, Netcash was rebranded as Sage Pay [19] before being sold in a management buyout [20] and again becoming Netcash in 2019. [21]

In 2013 Sage embarked on a programme of uniforming their product names and offerings and moved away from using the Softline brand name, branding the former Softline products as Sage. [4]

Acquisitions

Softline's acquisitions included:

DateAcquisition
November 1996Softline Limited acquires 100% of Ultra Technologies [22]
November 1996Softline Limited acquires 100% of MasterSkill Training [23]
May 1997Softline Limited acquires 100% of Multisoft SA [11]
August 1997Softline Limited acquires 100% of IBIS Services. This was Softline Limited's first off-shore acquisition. IBIS Services, based in the United Kingdom, a developer and distributor of accounting software specifically for the Construction and Plant Hire industries. [11]
August 1997Softline Limited acquires 100% of ISU Campus [10]
April 1998Softline acquired VIP Payroll Systems one of South Africa's largest payroll developers and implementers [24]
May 1998Softline increased the group's presence in the accounting software market through the acquisition of Lorge & Associates [25]
July 1998Softline Limited acquired Sybiz Software in Adelaide Australia for A$10m. [26] Sybiz was later sold in 2005 in a management buyout. [26]
November 1998Softline moved into the hospitality Point-Of Sale with the Acquisition of 100% of Pilot Software [27]
January 1999Softline enters USA market directly via the 100% acquisition of Datafaction [28]
January 1999Softline Limited acquires major competitor Pastel Software - A significant milestone in the history of Softline was the acquisition of Pastel Software. [29] This acquisition consolidated Softline's position as the largest accounting software vendor in southern Africa (with an estimated 80% market share) and then the second largest in Australia.
April 1999Softline acquires 100% of Opensoft a developer of e-commerce applications [30]
August 1999Softline acquires 100% of Handisoft, a leading provider of taxation and practice management software and furthers its presence in Australia [31]
November 1999Softline acquires 100% of ATS, an Accpac solution provider to strengthen its skills in the mid-range accounting software space [32]
April 2000Softline established its footprint in Canada through the 100% acquisition of Businessvision in Toronto [33]
November 2000Softline furthers its presence in the United States through the 100% acquisition of Accountmate, a developer of midrange accounting software based in California [34]

Products

Sage South Africa provide Sage's global products as well as local software including:

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References

  1. 1 2 3 "Hard choices for software firm". The Times. 7 April 2005. Retrieved 4 June 2022.
  2. ↑ "Contact us". Sage South Africa. Retrieved 4 June 2022.
  3. 1 2 "Sage Acquisition of Softline Finalized". Accounting Today. Scottsdale, Arizona, USA. 18 November 2003. Retrieved 4 June 2022.
  4. 1 2 "Softline is now Sage". Business Tech. 28 January 2013. Retrieved 4 June 2022.
  5. ↑ "Products - Business Management Software and Services". Sage South Africa. Retrieved 4 June 2022.
  6. ↑ "Ivan Epstein - Who's Who SA". Whoswhosa.co.za. Retrieved 25 June 2016.
  7. 1 2 "Softline Name Change". Sage Pastel Accounting. February 2013. Retrieved 4 June 2022.
  8. ↑ "QuickBooks buys local business and takes competition head on". ITWeb. 1 January 2006. Retrieved 4 June 2022.
  9. ↑ Wet, Phillip de (7 May 1999). "HCI sells Softline, safety net in place". ITWeb. Retrieved 4 June 2022.
  10. 1 2 3 "Softline's SVI lists on American Stock Exchange". ITWeb. 16 July 1998. Retrieved 4 June 2022.
  11. 1 2 3 4 5 "Softline Limited 60% owned subsidiary SVI Holdings Announces Six Months Results". ITWeb. 1 June 1998. Retrieved 4 June 2022.
  12. ↑ "SVI Holdings Inc. Announces Acquisition of Applied Retail Solutions". IndexArticles. 30 June 2021. Retrieved 4 June 2022.
  13. ↑ Peters, Kurt (3 April 2002). "SVI Announces the Return of Island Pacific". Digital Commerce 360. Retrieved 4 June 2022.
  14. 1 2 Norwood-Young, Jason (8 June 2000). "Accpac to acquire local distributor, LA Technology". ITWeb. Retrieved 4 June 2022.
  15. ↑ "Sage buys ACCPAC for $110m". The Register. 2 January 2004. Retrieved 4 June 2022.
  16. ↑ Communications, Watt (3 May 2006). "Softline ACCPAC launches warehouse management system". ITWeb. Retrieved 4 June 2022.
  17. ↑ "The Sage Group PLC – Softline acquires a leading Transaction Services Provider, Netcash". Archived from the original on September 26, 2011. Retrieved October 3, 2011.
  18. ↑ "Softline - Sage - Netcash - Payment Provider". SagePay South Africa. 1 November 2012. Retrieved 20 November 2019.
  19. ↑ "Sage Netcash rebrands to Sage Pay". Sage Pay (Pty) Ltd. 2013. Retrieved 6 May 2019.
  20. ↑ "Full Year 2019 Results press release" (PDF). Sage Group plc. Retrieved 20 November 2019.
  21. ↑ "Netcash brand reveal". Netcash. 1 December 2019. Retrieved 8 December 2019.
  22. ↑ "Softline to create network for leading Union". ITWeb. 11 March 1998. Retrieved 4 June 2022.
  23. ↑ PR, Headlines (9 July 2002). "MasterSkill partners with Unisa". ITWeb.
  24. ↑ "Sage South Africa | ITWeb". pressoffice.itweb.co.za. Retrieved 4 June 2022.
  25. ↑ "Softline adds value with two acquisitions". ITWeb. 1 June 1998. Retrieved 4 June 2022.
  26. 1 2 "About Us - Sybiz Software". www.sybiz.com. Retrieved 4 June 2022.
  27. ↑ "Softline goes POS". ITWeb. 24 March 1998. Retrieved 4 June 2022.
  28. ↑ "Softline buys California-based Datafaction for R32m". ITWeb. 7 January 1999. Retrieved 4 June 2022.
  29. ↑ "Softline acquires Pastel Group for R200m". ITWeb. 17 February 1999. Retrieved 4 June 2022.
  30. ↑ "Softline Group buys local e-commerce company". ITWeb. 13 April 1999. Retrieved 4 June 2022.
  31. ↑ "Software houses to change hands". The Sydney Morning Herald. 30 September 2003. Retrieved 4 June 2022.
  32. ↑ "Softline group buys ATS". ITWeb. 3 February 2000. Retrieved 4 June 2022.
  33. ↑ "Softline's BusinessVision best of the best in Canada and USA". ITWeb. 2 April 2001. Retrieved 4 June 2022.
  34. ↑ "Softline acquires 100% of AccountMate Software Corporation". ITWeb. 6 December 2000. Retrieved 4 June 2022.
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