Sage was founded by David Goldman, Paul Muller, and Graham Wylie in Newcastle, England, to develop estimating and accounting software for small businesses. In 1984, the company launched Sage Software, a product for the Amstrad PCW word processor. Five years later, Sage was listed on the London Stock Exchange. In 1994, Paul Walker was appointed as Chief Executive Officer, a post he occupied for 16 years.

In 1999, Sage entered the FTSE 100 and launched a dedicated Irish division based in Dublin.