Payroll software giant Sage has moved to acquire cloud platform CakeHR.

The listed North East-based company says the deal will add cloud HR capability for small businesses to its Sage Business Cloud platform.

CakeHR simplifies and automates HR tasks for small businesses, helping them drive productivity and connect with employees.

Around 27,000 people in more than 1,200 cities around the world use the software which includes leave management, automation of the joining and leaving process, management of expenses approvals and paying employees. It also keeps them compliant with local legislation.

In 2020 it will also be offered to Sage’s existing customers in the UK, with the CakeHR team joining the Sage workforce.

CakeHR is headquartered in London with bases in Latvia and Estonia.

“Building and acquiring great technology to help accountants and businesses focus on what matters most is a critical part of Sage becoming a great SaaS company,” said Sage’s chief product officer Lee Perkins.

“CakeHR provides easy-to-use cloud-based HR services that help businesses drive productivity and provide great experiences for their people.

“As with our recent acquisition of AutoEntry, we have been hugely impressed with the people and technology at CakeHR, particularly their ability to enable employees to self-manage, and are delighted to welcome them to Sage.”

Kaspars Upmanis, CEO of CakeHR, said: “By combining our experience and expertise with Sage, CakeHR will be able to further its vision of providing an easy-to-use, powerful, and always-accessible HR platform to any organisation.

“This is an incredible opportunity to enable organizations to streamline their HR processes and continue to increase their employees’ productivity and work-life experience through our solution.

“HR deserves better. HR must be simplified. Joining the ranks of Sage has brought us closer to that goal than ever before.”