In making the announcement, Sage said 90 percent of SMEs in Brazil do not use business software. Folhamatic claims its software is used in about 13,000 of the approximately 78,000 accounting firms in the South American country and at 46,000 small businesses. More than 80 percent of Folhamatic's revenue is subscription-based and revenue for the 12 months ended December 31 was about $68 million, a 13 percent increase over the prior year. The remaining 25 percent equity stays with Mauricio Frizzarin, the acquired company's CEO and founder. That stake is subject to a put-and-call arrangement exercisable in 2015.