LONDON: The Sage Group plc has entered into an agreement for the sale of its Sage Pay business to Elavon, a leading global payments company and wholly owned subsidiary of U.S. Bancorp.
Sage Pay is a leading provider of payment gateway services in the United Kingdom and Ireland and the divested business will remain an important payments partner for Sage after completion.
For the year ended 30 September 2018 Sage Pay had revenue of £41 million and operating profit of £15 million. The total sale consideration is approximately £232 million, payable in cash on completion. Sage expects to report a statutory profit on disposal of approximately £180 million on completion.
Completion of the transaction is subject to Elavon obtaining regulatory approval by the Board of Governors of the Federal Reserve System in the United States as well as the Central Bank of Ireland, and is expected to occur in Q2 FY20.
Steve Hare, Sage’s CEO commented: “Our vision of becoming a great SaaS 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. 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.”