Sage acquires Criterion to simplify cloud payroll and human capital management for mid-sized businesses
Sage has acquired Criterion, a U.S.-based cloud HCM and payroll provider that serves over 80,000 users. Criterion's platform integrates with Sage Intacct, Sage 300 CRE, and other ERP systems like Microsoft Dynamics. Sage is looking to simplify HR management for customers with a more integrated system.
An interesting topic that surfaced up in this press release is that while customers buy products under the Sage Business Cloud brand (like Sage Intacct), this deal appears to be about building the Sage Platform which seems to be the underlying technology architecture and set of APIs designed to connect those products. AKA a push towards creating an ecosystem.
Criterion vs. Sage People
This acquisition raises the question of where Criterion fits in relation to Sage's existing mid-market HCM product, Sage People (formerly Fairsail). The key difference - and likely the strategic driver for this purchase comes down to the underlying technology platform. Sage People is built on the Salesforce platform, which creates a dependency on a separate ecosystem for both licensing and integration.
Criterion, on the other hand, provides Sage with a modern, wholly-owned technology stack. This positions Criterion as the go-to, native HCM solution for the core Sage Intacct customer base in the U.S. For consultants, this will mean you can offer a more seamlessly integrated finance and HR solution without navigating the complexities of the Salesforce platform. While Sage People will likely remain an option for larger, global enterprises or those already invested in Salesforce, this move gives Sage a powerful, platform-native answer for the majority of its mid-market customers.
This appears unlikely to impact Sage 100 - at least near term.