Software firm Sage mulling sale of payments business

Fri, 09 Dec 2016 | DIVISION SALE

UK software firm Sage is considering selling its struggling North American payments business as the group looks to boost its growth.

The company, the largest of its kind in Britain, confirmed in a statement this week it was “evaluating potential strategic options, including a sale” of the payments business, adding: “There can be no certainty that this evaluation will lead to any transaction.”

Headquartered in Newcastle, Sage was founded in 1981 and provides accounting and payroll software for clients in 23 countries, employing 13,000 people.

The firm entered the FTSE 100 in 1999 and enjoyed strong growth as desktop computers became more widespread.

But its traditional offer - installing software in clients’ offices - has come under pressure recently from competition from start-up firms and rivals offering web and cloud-based products, the Financial Times reported.

Its payments business is also thought to be struggling as giants including Apple, Google and PayPal now dominate the market.

Last month, Sage posted improved revenue growth for the 12 months to the end of September, but warned that its payments business was underperforming.

The company reported overall revenue growth of 6.1 per cent but growth in its North America arm stayed flat, the company adding that it was “underperforming relative to Sage's overall performance”.

Find service businesses for sale.


Share this article



Latest Businesses for Sale

Haulage & Warehousing Services
UK Wide

Utilises a team of experienced drivers to provide tailored logistics solutions, with a focus on home delivery services, whilst also offering complementary warehouse solutions. Serves 20 active clients from a wide range of sectors, including retail, i...

Asking Price: Offers Invited
Turnover: £2,900,000

LEASEHOLD


Automotive Electrical Products & Services
UK Wide

Established for over 50 years.Provides a range of automotive electrical services including air conditioning, heating, tachographs, security systems, vehicle tracking and reversing aids for vehicle, plant and marine industries. Over 100 active clients...

Asking Price: Offers Invited
Turnover: £771,000

FREEHOLD


Freight Forwarding Services
South East, UK

Provides freight forwarding for a range of sectors, as well as warehousing and an array of other complementary services. Serves over 20 clients, with an 80% retention rate.Strong second-tier management team in place. Generates revenue on an internati...

Asking Price: Offers Invited
Turnover: £956,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
11
 
Aug
 

PPL Corp. seeks sale of Western Power Distribution | BUSINESS SALE

PPL Corporation has announced that it has put its UK utility...

 
10
 
Aug
 

Adelie Foods’ Urban Eat brand acquired by Samworth Brothers | BUSINESS SALE

Samworth Brothers has completed the £6.4 million acqui...

 
07
 
Aug
 

Wrexham-based wire firm falls into administration | ADMINISTRATION

Wire manufacturer Wrexham Wire has fallen into administratio...

Free guide: 10 Biggest Buyer Mistakes

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

Email


Related News

 
10
 
Sep
 

Sage Group to sell its payment processing arm | BUSINESS SALE

Sage Group, the FTSE-100 technology firm which is thought to...

 
26
 
Dec
 

Hartlepool United Football Club for sale | BUSINESS SALE

After being relegated from the Football League for the first...

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