Payroll application vendor Sage Micropay has acquired local rival Flagship for an undisclosed amount.

The acquisition will incorporate the Melbourne-based company's Wage Easy payroll system into Micropay's product roadmap while all staff conditions will remain unchanged.

Sage Micropay managing director Craig Osborne said it will target both companies' products, which share the Delphi development platform, at mid-size enterprises in retail and hospitality markets.

"The Wage Easy brand is well known and respected in the hospitality sector and there are a number of large hotels that currently use the product," Osborne said. "Hospitality and retail markets represent strong growth opportunities for Sage MicrOpay, particularly for our payroll services business."

"Wage Easy and MicrOpay Meridian products share a common software development platform which will enable development teams to utilize the combined intellectual property across both products."

Wage Easy's strong network of Melbourne-based resellers will be retained.