The Sage Group, a UK-based multinational enterprise software firm, has agreed to acquire US-based accounting software start-up Lockstep.

Under the terms of the agreement, Sage will support Lockstep’s investment in innovative solutions as well as its plans to expand developer APIs.

The company is said to facilitate Lockstep to develop accounting integrations for third parties in order to create new applications and drive choice.

Sage chief technology officer Aaron Harris said: “Lockstep is a strategically important milestone in our growth strategy. Its complementary portfolio of solutions, resources, and know-how will accelerate our ambition to become the trusted network of SMBs.

“Working together we will continue to remove the barriers that limit accounting teams by streamlining their workflows, allowing them to drive productivity and efficiency, turning the back office into the catalyst for SMB digitalization and all the benefits that delivers.”

Following the closing of the deal, Lockstep is expecting to accelerate the efforts of automating accounting workflows between companies and providing Sage with complementary tools and skills.

Launched publicly in 2020, Lockstep raised $10m in Series A funding in February 2021.

The start-up provides applications to automate accounts receivable and accounts payable along with the free inbox solution allowing accounting staff to automate customer and vendor workflows in a single application.

Its Platform API is said to allow third-party developers to create financial and accounting applications.

Furthermore, the company is anticipated to benefit from Sage to expand its existing partnerships and integrations with some of the accounting industry’s businesses.

Lockstep CEO and co-founder Peter Horadan said: “Over the years it has become abundantly clear that Lockstep and Sage have the same vision for the future of the industry. Since its inception, our mission has been to improve and transform the way companies do business with one another.

“This acquisition will provide Lockstep with the resources and global reach it needs to accelerate the development of connected accounting which is imperative for accountants, finance teams, and the companies they serve.”