SOFTWARE firm Sage said yesterday that it was still chasing acquisitions - despite failing to land Norwegian rival Visma last month.

The Newcastle group unveiled a 19 per cent rise in first-half profits to £113.7m and said a push into new territories and products were among its plans.

Growth in countries such as Canada and South Africa, where the firm only recently built up a presence, helped revenues to rise 18 per cent to £455.9m.

Sage invested £281m during the six months to March 31 in deals that strengthened its existing businesses in the US and France.

But it failed to catch its largest prey after Visma dropped its support for a £334m takeover last month and then backed a higher offer from private equity firm HgCapital instead.

Sage said its decision to walk away from Visma demonstrated its commitment to shareholder value and financial discipline, but said: "We continue to evaluate further acquisition opportunities."

The company said its customer base had grown from 4.7m small and medium enterprises (SMEs) to five million since the end of September.

It also said it had seen strong growth in new territories such as Spain, South Africa, Canada and Australia in the six months that it invested £281m to extend its businesses in the US and France.

Chief executive Paul Walker said: "The first half of 2006 has progressed as expected, with our expanding customer base of five million businesses continuing to purchase more of our locally-developed software and services."

Sage said two significant acquisitions in the past six months had increased its workforce to 10,500, up from 8,200 last year. It acquired Adonix SA in November for £74.1m, strengthening its grip on the French market, and bought US-based Verus Financial Management in February for £184.6m.

The company said: "Acquisitions in high-growth segments of the SME market remain an important part of Sage's growth strategy."