BUSINESS and accounting software company Sage has bought US rival ACCPAC for £62.5m.

ACCPAC is a subsidiary of Computer Associates International, based in California.

The company is a vendor of a suite of business management solutions including accounting and customer relationship management software for small and medium-sized businesses (SMEs).

It has more than 140,000 larger SME customers, notably in the US, Canada, South Africa, Australia and Singapore. It also serves 400,000 small SMEs.

The acquisition will establish Sage with a market-leading position in Canada, and strengthen its position in the US market for larger SMEs.

ACCPAC also has businesses in Australia and South Africa, which will complement Sage's operations, and a strong position in Singapore providing an entry into the Asian markets.

Paul Walker, Sage chief executive, said: "Acquiring ACCPAC has not only strengthened our North American market position by establishing a position in Canada, but has added to our product offering in the Southern Hemisphere. In addition, ACCPAC's Internet-based customer relationship management offering extends the options available to those of our customers seeking to purchase front-office solutions."