Sage chief executive Paul Walker believes Teta will complement his firm's existing business in Poland Courtesy of Sage Group

London Stock Exchange-listed UK software supplier Sage Group launched a public tender offer to take over 100 percent of Wrocław-based software provider Teta in a bid to boost its CEE portfolio.

The company offered zł.12.75 per share on June 23, a price including a premium for taking over the company. The bid is also zł.1 per share higher than that of Dutch software company UNIT4, submitted in late May.

The WSE-listed Teta provides enterprise resource planing (ERP) and HR solutions to mid-market customers in Poland and Hungary. The company finished 2009 with a consolidated net profit of zł.9.64 million and expects net revenues on sales at the level of zł.110 million this year.

Sage has been present in Poland since 2005, when it acquired ERP software producer Symfonia. Paul Walker, Sage’s chief executive, said in a statement that acquiring Teta would complement the company’s existing businesses in Poland.

“By joining these businesses together we can offer our customers a richer portfolio of products and services, and further develop our offerings in the attractive Eastern European markets,” he said.

The company would consolidate Teta with its Polish arm, Sage Sp. z o.o., into an entity that would bring in consolidated revenues at around zł.170 million.

David Clayton, Sage’s mergers and acquisitions director, told ISB that if it is successful with the takeover, Sage would withdraw Teta’s shares from the bourse.

It was obvious that sooner or later we would join an international group,” Jerzy Krawczyk, president of Teta, told Parkiet. He does not expect a third bidder.