Sage Group to sell its payment processing arm

Tue, 10 Sep 2019 | BUSINESS SALE



Sage Group, the FTSE-100 technology firm which is thought to be the biggest in the UK, has decided to sell Sage Pay, the payment processing division which caters to thousands of SMEs customers.

Headquartered in Newcastle, the company has hired investment bank Rothschild to find buyers for Sage Pay, which is known to have an estimated 50,000 small business customers.

However, in spite of a solid customer base, a source close to the company revealed that Sage Pay only accounted for a small fraction of the group’s total sales and profits.

Details of Sage Pay’s valuation and potential buyers have yet to be revealed to the public, but those handling the sale at Rothschild have encouraged all interested parties to come forward. The bankers have anticipated interest from a number of other payment firms, as well as private equity companies.

The move to sell Sage Pay follows the group’s decision to sell its payments software division in the US in 2017, and its payroll division in January this year. The strategic decisions are in line with industry takeover activity, which has risen in recent years due to platforms opting to merge and acquire companies within the payments sector.

The group is focusing its efforts on transforming itself into a cloud software firm which provides human resources, accounting and payroll services for business consumers. The company appointed Steve Hare as its new chief executive last year in an attempt to make the shift.

However, Sage disclosed a significant fall in software and software-related revenues, forcing its shares to fall by 11 per cent at the end of July – the steepest decline in a single day in 16 years.


Share this article



Latest Businesses for Sale

Electrical Product Specialists
Hampshire, UK Wide

A great opportunity to take on a respectable electrical control panel manufacturer in Hampshire is now available to the market. High end technology. Registered ECA member. Commercial client base. Skilled team of staff. Excellent reputation. Offers in...

Asking Price: £900,000
Turnover: £578,207

LEASEHOLD


IT, ERP & CRM Solutions & Software Support Provider
UK Wide

Specialises in the provision of Sage 200 and Sage CRM systems, as well as Office 365 and other solutions. The company has developed its own Sage-based solution for a niche sector, which contributes over £1 million to turnover per annum. Established o...

Asking Price: Offers Invited
Turnover: £3,200,000

LEASEHOLD


Smart Meter Installer
North of England, UK Wide

Offers a first-class service in smart meter installations. Has completed over 500,000 meter installations at a completion rate of 85%, higher than the national average. Has the experience required to manage complex projects for clients and boasts a s...

Asking Price: Offers Invited
Turnover: £1,600,000

RELOCATABLE



View more businesses for sale

News Search

Latest News

 
07
 
Aug
 

Wrexham-based wire firm falls into administration | ADMINISTRATION

Wire manufacturer Wrexham Wire has fallen into administratio...

 
06
 
Aug
 

Leading UK tour operator Ski Weekends enters administration | ADMINISTRATION

One of the UK’s leading ski tour operators Harris Holi...

 
05
 
Aug
 

Pizza Express puts itself up for sale and looks to close 67 outlets | BUSINESS SALE

Pizza Express has announced that it is seeking a buyer for i...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources