SAP (NYSE:SAP) has bought TopManage Financial Solutions for cash. TopManage developed its "Menahel" accounting software. SAP is using the acquisition to announce a new product line for the small and medium business market (SMB), including accountancy firms and banks. The amount of the deal was not officially disclosed, but SAP’s CFO said the company would pay “less than $10 million.”
SAP managers said at a press conference at the CeBit exhibition in Hanover that the acquisition was part of a general strategy change from a focus on large organizations to meet the needs of SMBs as well.
SMB products include analytic tools, warnings about emergencies and other solutions that enable businesses to manage organizational information. TopManage will be attached to SAP's new BusinessUnit (BU SMB), which is developing products for the SMB market.
TopManage's Menahel software has an excellent reputation among Israeli organizations, and thousands of packages have been sold. TopManage began expanding overseas in recent months, and is now selling a Spanish-language version in South American countries, such as Colombia and Panama.
TopManage was founded in 1996 as part of the Vanenburg group, which is owned by the Baan family. The CEO is Reuven Agassi. Shareholders are Quicksoft, owned by Agassi, Harel Computers, private investors and employees.
SAP intends to retain TopManage's Israeli development and support center. The support center will continue to provide technical support for Israeli customers and will be a global know-how center. The development center will be significantly expanded to become the product's global development center.
Agassi said the combination of the right business model, investment in advanced technology and a focus on customer needs proved to be a winning formula that will now bring the company’s product to tens of thousands of work stations worldwide.
TopManage has 80 employees at its office in Ramat Hahayal, Tel Aviv. SAP bought TopManage's sister company TopTier a year ago for $400 million in cash.
Published by Israel's Business Arena on 13 March 2002