Sage Software, Inc. has acquired Lockstep Inc, a provider of cloud native technology that automates accounting workflows between companies.

The acquisition involved a subsidiary of the Sage Group merging with Lockstep Network Holdings, Inc (Lockstep Inc), with Lockstep Inc being the surviving entity. At India level, Sage Group Plc indirectly acquired Lockstep's Indian subsidiaries, namely Lockstep Network India Private Limited and VV Finly Technology Private Limited.

Khaitan & Co acted for Sage Group Plc in conducting a due diligence on Lockstep's Indian subsidiaries, reviewing the merger agreement and employee/HR documentation. The firm also advised on the treatment of employee stock options issued to Lockstep's India based employees and transition of Lockstep's India based employees into Sage's ecosystem through harmonized policy consideration.

The core team consisted of Anshul Prakash (Partner, Employment), Ashwin Bishnoi (Partner, Corporate), Shailendra Bhandare (Partner, IP), Amit Wadhwani (Partner, Real Estate), Abhimanyu Pal (Principal Associate, Employment), Shivam Tandon (Principal Associate, Corporate), Sourav Dan (Principal Associate, IP), Kruthi Murthy (Senior Associate, Employment), Swati Garg (Senior Associate, Corporate), Mayank A Jain (Associate, Employment).

Skadden, Arps, Meagher & Flom LLP advised the Sage Group on the global transaction.

The transaction team included Jeffrey Brill (M&A Partner), Amr Razzak (M&A Partner), Nicholas Colombo (Counsel) and Michael Comizio (Associate); Anne Villanueva (Labor and Employment Law Partner); Nathan Giesselman (Tax Partner); Ken Kumayama (Intellectual Property and Technology Partner); and Kristin Davis (Executive Compensation and Benefits Counsel).

Wilson Sonsini Goodrich & Rosati and IndusLaw advised Lockstep Inc. and Lockstep's Indian subsidiaries respectively.

The transaction involved an indirect acquisition by Sage of Lockstep's Indian subsidiaries, with all of Lockstep India based employees being assimilated into Sage's ecosystem by harmonization of employment documentation, policies and protocols. This included exploring different options to ensure a seamless transition for the employees without any disruptions to the business or client deliverables.

The Sage Group plc is the leader in accounting, financial, HR and payroll technology for small and mid-sized businesses (SMBs). By digitising business processes and relationships with customers, suppliers, employees, banks and governments. Sage's digital network connects SMBs removing friction and delivering insights.

Headquartered in Seattle, Washington (US) and employing over 130 colleagues, Lockstep develops products and services that streamline accounting processes allowing customers to save time eliminate human error and improve cash flows.

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