Pastel Software and Sage Distribution have joined forces to launch the new Software Alliance Group (SAG) for the accounting software market.
The merged entity will now offer 10 product lines to a specialised core of 120 financial management and business software resellers.
Prior to the merger, Pastel Software Australia distributed the Sage Pastel range of accounting software. Sage Distribution offered the Sage Software Australia range of accounting products including Line 50 and ACT!
The financial terms of the merger have not been disclosed. Sage Distribution's John Marshall and Pastel Software's John North will act as joint managing directors of the group.
The decision to consolidate the businesses was driven by a desire to combine resources in an attempt to tackle the crowded business software market, according to Marshall.
"SAG will now stand out by bringing its user-base and prospects a one-stop-shop for product, services and customisation," he said.
The move was given greater impetus following the Sage Group's May decision to consolidate its products - including Accpac, ACT!, HandiSoft and Micropay - under the new brand Sage Software Australia, Marshall said.
"The consolidation has had a positive impact because Sage Software Australia will be spending $3.5 million on brand building," he said. "A lot of end-user awareness has been created and we are keen to use that to help Sage Pastel grow its sales tenfold in Australia."
To accommodate this growth, the group had also announced an aggressive partner recruitment drive, seeking to boost reseller numbers by 50 per cent, Marshall said. It had also opened a new Sydney office with a staff of 16 to service the eastern seaboard.
"There is a market out there for MYOB and QuickBooks but they cater to small businesses," he said. "The thing with small businesses is that they grow and, when they do, they become ready for one of our products."