SAP, IBM compete for Sage?

Sage is in acquisition talks with IBM and SAP, reports have claimed today.

An inside source at the software and services company told Computing the firm was in discussions with both and it would “benefit the business” to link with a larger organisation.

"The structure of the organisation holds us back, and we would certainly benefit from more collateral and capital expenditure," he said.

Although traditionally thought of for its accounting software, Sage has widened its remit and even entered into cloud services at the beginning of this year.

With IBM increasingly focused on the software and services side of the business and SAP leading the way in the sectors, both companies would seem a good fit for Sage.

IT Pro called Sage but it said the company "didn't comment on rumour and speculation."

We also contacted IBM and SAP for comment but they had not returned our request at the time of publication.