A GLOBAL supplier of business management software, Sage, yesterday announced the £17m acquisition of Snowdrop Systems Limited.

Newcastle-based Sage paid cash for Snowdrop, which provides human resources (HR) management-related software to more than 700 mid-sized businesses across the UK.

In the year to December 2006, Snowdrop reported revenues of £7.5m and earnings before interest, tax and amortisation of £1.1m.

The company, which was established in 1991, provides businesses with the software to automate and manage a broad range of HR activities including recruitment, personnel, pay and flexible benefits, e-HR, training and development and succession planning.

Sage chief executive Paul Walker said: "The acquisition of Snowdrop brings to Sage a portfolio of HR and payroll software solutions for the UK mid-market, complementing our existing software solutions."

Sage is due to announce its interim financial results today.