Seattle-based accounting technology startup Lockstep is being acquired by The Sage Group, a British accounting and human resources software company.
Peter Horadan, co-founder and CEO of Lockstep, said the deal should close in September, but the companies aren't disclosing the financial terms of the deal. Lockstep's 130-person team will all be joining Sage, and Lockstep will operate as an independent brand after the deal closes, Horadan said.
"A lot of time in startup land, we talk about exits. For me I view this as an acceleration," Horadan said. "We're actually adding and increasing the investment in the space."
Although Lockstep calls Seattle its headquarters, the company is remote-first and doesn't have an office here. Horadan said the company will remain that way, and employees won't have to relocate as part of the acquisition. He added that talks with Sage began almost a year ago.
Lockstep, launched in 2020, automates manual tasks for accounting teams like extracting information from emails and communicating with customers. Its clients include Securitas and MarVista Entertainment. Lockstep raised a $10 million Series A round in February 2021 and $2.5 million from Amex Ventures in August 2021.
In addition to Seattle, Lockstep has a team in Bangalore, India, that uses a coworking space, Horadan said. Horadan, who spent almost five years at Seattle-based tax software company Avalara and was the chief technology officer there, added that he told Lockstep employees about the acquisition Tuesday morning.
"They were really excited because this is a very positive message for employees," Horadan said. "We're going to be increasing our level of investment, and they now get to be part of a big organization and have the resources to address that customer base."
Sage, meanwhile, was founded in 1981 and went public on the London Stock Exchange in 1989. The company provides software and services in invoicing, payroll, human resources and taxes.
“Lockstep is a strategically important milestone in our growth strategy," Aaron Harris, chief technology officer at Sage, said in a release. "Working together we will continue to remove the barriers that limit accounting teams by streamlining their workflows, allowing them to drive productivity and efficiency."
