Software firm builds on presence in entry-level HR and payroll space

Sage is offering its VARs a leg-up into the mid-market payroll and HR software sector following its quick-fire acquisitions of Snowdrop and KCS.

Less than six months after buying Snowdrop for £17m, Sage has coughed up £20m for HR, payroll and time-and-attendance software and services outfit KCS. Both vendors build on Sage’s presence in the entry-level HR and payroll space.

Paul Stobart, chief executive of Sage UK, said he was keen to move both vendors from a direct to a mixed channel model.

“Snowdrop and KCS operate directly at present because of the specialist nature of the upper mid-market payroll space, but this is not to say partners cannot get involved.

“If a partner wants to get serious on payroll and HR there is no reason why they should not. And if they bring clients of their own to Snowdrop or KCS, they will get a commission.”

Stobart claimed the two vendors complement each other because Snowdrop is an established HR player while KCS has a stronger foothold with larger clients and specialises in payroll.

Joanne Fulton, marketing director at Sage reseller FDS Group, said FDS is already training its sales staff on Snowdrop and plans to do the same with KCS.

“We are very involved in promoting the Sage 1000 line and end-to-end business management solutions. HR is the missing piece of the puzzle,” she said.