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Sage Eyes Firms for Payroll Services

Connie Certusi, SageSage's pending purchase of Paychoice lays the ground for Sage to begin offering payroll services through its accountants network. The acquisition of the Mount Laurel, N.J-based company for $157 million in cash, announced this week, also provides Sage the opportunity to integrate its major accounting software packages with the Paychoice offerings and to cross sell payroll and human resource products.

"They [Paychoice] have a licensee model, which we think will be very interesting for our partners and accountants," says Connie Certusi, EVP of Sage's Small Business Solutions division.

Sage sold its payroll service to what was then in CompuPay in 2008. Certusi, who terms the former offering limited, says her company got back into payroll because the acquired company has a cloud platform which is "tightly integrated on the backend. You can think of it as the outsourced model." She also says Paychoice has a "very robust technology platform."

The Paychoice lineup includes self-service payroll for companies with fewer employees and with services that scale "all the way up to the mid-market," say Certusi.

Besides utilizing licensees, Paychoice also has a direct sales channel. "Our ultimate goal is to make it available especially to accountants where we can help them provide the payroll services," Certusi says. She adds that "a significant number of the licensees are accountants."

Certusi describes the acquired human resource services as complementary to Sage's existing products. She envisions technology from Paychoice being utilized in Sage HR products and vice versa.

The 260 Paychoice employees will remain as will the management team. CEO Robert Digby will continue to manage the business. Sage acquired the business from investment firms Great Hill Partners, Baird Venture Capital and North Hill Ventures.,

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
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