Softline (South African software company)


Sage South Africa, or formerly known as Softline, which is part of The Sage Group, is a South-African software company that provides business software, services and support to small and medium-sized businesses. Whilst Softline's heritage is in the SME market, the company also sells its services to specific industries and larger organisations. Softline's core solutions cover accounting, ERP, Payroll and HR, Business Intelligence, customer relationship management and retail software solutions to small, medium and larger sized companies in South Africa and Australia.
Softline was founded by Ivan Epstein and Alan Osrin in 1988. In 2003, Softline was acquired by The Sage Group plc.
The individual silo's within the Sage South Africa group are:

Founding of Softline (1988-1990)

Softline was founded by Ivan Epstein and Alan Osrin in 1988 during the formative years of the software industry with a mere R1, 500 loan. The two founding members of Softline were soon joined by local entrepreneur Steven Cohen in 1990.

Development and distribution of Brilliant Accounting (1990-1994)

After identifying a gap in the South African market for locally developed, user friendly accounting software aimed primarily at medium-sized enterprises, Softline developed and launched a range of accounting software products under the name Brilliant Accounting. Within 2 years, Brilliant Accounting became a household name and achieved "Best Seller Status". By 1993, more than 20,000 South African businesses were utilising Brilliant Accounting. The Brilliant Suite of products were expanded to address a number of vertical markets. A national distribution infrastructure was established by Softline as well as a division to service and support Softline's growing base of Brilliant users. In 1994, Ivan Epstein secured a long term agreement with Intuit, granting Softline exclusive distribution rights to the Intuit range of products in Southern Africa. This further strengthened Softline's position in the accounting software market.

Formation and growth of Softline Holdings (1995-1997)

Softline experienced remarkable growth during the 1990s and by 1995 began to actively pursue the implementation of Softline's listing in the Johannesburg Stock Exchange. During this time, Softline's reseller base extended into Africa and the company made the following acquisitions:
DateAcquisition
March 1996Softline Limited acquires 100% of Computer Parts
November 1996Softline Limited acquires 100% of Ultra Technologies
November 1996Softline Limited acquires 100% of MasterSkill Training

In December 1996, Softline Distribution was awarded the Computer Reseller News Channel Champion Accounting software Award 1996.

Softline Limited lists on the Johannesburg Stock Exchange (1997)

On 19 February 1997, Softline Limited lists on the Johannesburg Stock Exchange with a market capitalization of R250m.Later in the year, Softline Limited reported above forecast maiden results for yearend February 1997 and Ivan Epstein selected as a Computer Reseller News Channel Executive 1997 - Top 20 Movers and Shakers in Southern Hemisphere. Softline Limited also completed the following acquisitions in 1997:
DateAcquisition
March 1997Softline Limited acquires 100% of PCI
May 1997Softline Limited acquires 100% of Multisoft SA
August 1997Softline Limited acquires 100% of IBIS Services. This was Softline Limited's first off-shore acquisition. IBIS Services, based in the United Kingdom, a developer and distributor of accounting software specifically for the Construction and Plant Hire industries.
August 1997Softline Limited acquires 100% of ISU Campus

In October 1997, the black empowerment group Hosken Consolidated Investments acquired 20% interest in Softline. In a back to back transaction, Softline acquired 60% of US based SVI Holdings Inc., for R150 million. This transaction marked Softline's entry into international markets. At this time, SVI had operations based in the US and Australia.

Local and international acquisitions 1998-2002

During 1998 Softline made the following acquisitions:
DateAcquisition
April 1998Softline acquired VIP Payroll Systems one of South Africa's largest payroll developers and implementers
May 1998Softline increased the group's presence in the accounting software market through the acquisition of Lorge & Associates
July 1998Softline Limited acquired Sybiz Software in Adelaide Australia for A$10m
November 1998Softline moved into the hospitality Point-Of Sale with the Acquisition of 100% of Pilot Software

In July 1998, SVI transferred their listing to the American Stock Exchange. Ivan Epstein, as a board member and director, worked closely with the senior executive management of SVI in refining their focus, assessing opportunities, outlining strategies and raising the profile of SVI in the investment community in the USA.
In 1999, Softline Limited went on to make a number of additional acquisitions, including:
DateAcquisition
January 1999Softline enters USA market directly via the 100% acquisition of Datafaction
January 1999Softline Limited acquires major competitor Pastel Software - A significant milestone in the history of Softline was the acquisition of Pastel Software. This acquisition consolidated Softline's position as the largest accounting software vendor in southern Africa and then the second largest in Australia.
April 1999Softline acquires 100% of Opensoft a developer of e-commerce applications
August 1999Softline acquires 100% of Handisoft, a leading provider of taxation and practice management software and furthers its presence in Australia
November 1999Softline acquires 100% of ATS, an Accpac solution provider to strengthen its skills in the mid range accounting software space
April 2000Softline established its footprint in Canada through the 100% acquisition of Businessvision in Toronto
November 2000Softline furthers its presence in the United States through the 100% acquisition of Accountmate, a developer of midrange accounting software based in California
May 2002Softline strengthens its position in the Australian Payroll market via the 100% acquisition of one of Australia's largest payroll developers

Softline acquired by the Sage Group plc (2003)

In 2003, Softline delisted from the Johannesburg Stock Exchange to be acquired by The Sage Group plc, one of the leading providers of business management software and services to SME's.

Softline acquires Accpac (2004)

In 1989, Alan Ware and Jeremy Waterman established LA Technology, the distributor for Accpac International throughout sub Saharan Africa. LA Technology was later acquired by Accpac International in 2000 and became known as ACCPAC Africa. In 2004, ACCPAC Africa was acquired by the Sage Group plc and was renamed Softline Accpac.

Softline acquires Sage Netcash (2010)

In May 2010, Softline announced the acquisition of Netcash Ltd, a company that provides transaction processing services in three primary areas: electric funds transfer payments, debit order collections and credit card transaction processing. Through the acquisition, Softline was able to provide a solution to SMEs that enabled them to transact in EFT's, debit order and credit card transactions directly from their back-office accounting and payroll applications.

Additional acquisitions via SVI USA

Business Management Software Solutions

Softline offers various business management software solutions covering the following areas:
Softline's brands include Softline Accpac, Softline Enterprise, Softline Pastel Accounting, Softline Pastel Payroll and Softline VIP as well as a selection of Sage products.

Softline Accpac

Softline Accpac is a full service enterprise management software package that can be used across industries.

Softline Pastel Accounting

is an accounting software package that is used by over 200 000 companies in 52 countries across the globe.

Softline Pastel Payroll

Pastel Payroll is online payroll software product developed by Softline.

Softline VIP

Softline VIP is a Payroll and HR software system for small, medium and large corporations.

Key figures

Ivan Epstein Chief Executive Officer Softline and Sage AAMEA

Ivan is the co-founder and CEO of the Softline Group. His current role is that of CEO of Sage AAMEA which includes Softline/Sage in Africa, Australia, Middle East and Asia. He is one of four operational CEOs in the Sage Group.Ivan co-founded Softline in 1987 with Alan Osrin and Steven Cohen. Ivan is responsible for Sage's strategic direction, ongoing growth and vision in the AAMEA region.

Rob Wilke Chief Financial Officer Softline and Sage AAMEA

Rob joined Softline in May 1997 appointed to the position of Chief Financial Officer in April 2000. Rob brings to the Softline Group his skills and experience in financial management, merger and acquisitions, and business development. Rob holds a Bachelor of Commerce and Bachelor of Accounting. He is also a member of the South African Institute of Chartered Accountants. In 2004 he completed his MBA in Finance.

Jeremy Waterman MD, Softline Accpac

Jeremy is the founder of LA Technology, the distributor for Accpac International from 1989 to 2000, when the company was acquired by Accpac International and Accpac Africa was formed. In 2004, Accpac International was acquired by the Sage Group plc, and subsequently Accpac Africa became part of the Softline Group, today known as Softline Accpac. Jeremy holds a BSc Civil Engineering and an MBA.

Steven Cohen MD, Softline Pastel Accounting

Steven is a co-founder of Softline and the Managing Director of Softline Pastel. In his role as Managing Director, Steven is responsible for the strategic direction and ongoing growth of Softline Pastel.
Steven holds a Bachelor of Commerce and Bachelor of Accounting from WITS University and is a member of the South African Institute of Chartered Accountants.

Grant Lloyd MD, Softline Pastel Payroll

Grant fulfils the role of Managing Director of Softline Pastel Payroll and also fulfils the role of acting CTO for the Sage AAMEA region.

Anton van Heerden MD, Softline VIP

Anton qualified as a CA in 1994 after which he worked at Deloitte's in Toronto. In July 1995 he was appointed Financial Manager of VIP; in 1998 he became Managing Director. Anton was a member of the Softline Board from 1999 until November 2003, when they joined the group as Softline VIP.

Charles Pittaway MD, Softline Netcash

Charles Pittaway is the founding partner of Netcash which was established in 2002.
In his role as Managing Director, Charles is responsible for the strategic direction and growth of Netcash within the Softline Group. His key focus is directing his team in the development and management of the various transactional services offered by Netcash.