18th Nov 2019 07:55
(Alliance News) - Sage Group PLC on Monday said it has entered an agreement for the sale of its Pay business to payments firm Elavon Inc, a subsidiary of US Bancorp, for GBP232 million.
Sage expects to report a statutory profit on disposal of GBP180 million on completion, it said, which is expected in the second quarter of its financial 2020.
Back in September, the FTSE 100-listed accounting software firm had confirmed press reports that it was evaluating strategic options for its Pay division, including a sale.
For the year to the end of September 2018, Sage Pay had revenue of GBP41 million and operating profit of GBP15 million.
"Our vision of becoming a great software-as-a-service company for customers and colleagues alike means we will continue to focus on serving small and medium-sized customers with subscription software solutions for Accounting & Financials and People & Payroll," said Sage Chief Executive Steve Hare.
"Payments and banking services remain an integral part of Sage's value proposition and we will deliver them through our growing network of partnerships, including Elavon," added Hare.
By Evelina Grecenko; [email protected]
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