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.
Highly experienced team in place, with a suitable candidate to fill an upper-level management position, if required. Serves a large regional client base, with clients operating in industry sectors including education, healthcare and facilities.
Strong pipeline of future work, which is currently valued at £2m. Provides over 2,500 unique automotive engine components for a comprehensive range of leading brands, catering to OEMs and wholesalers worldwide.
SIA / Safe Contractor approved, manned security and accredited training course specialist with impressive nationwide reputation and client base.
24
|
Apr
|
Automotive parts supplier secures PE backing | BUSINESS SALE
Rimmer Bros, a Lincoln-based restorer and supplier of replac...
24
|
Apr
|
Kitchen firm expands construction sector offering with new acquisition | BUSINESS SALE
Nolte Kitchens UK has completed the acquisition of contracts...
23
|
Apr
|
Furniture retail group acquires stock and IP of e-commerce firm | BUSINESS SALE
Flair Furniture, a retail group based in West Yorkshire, has...
20
|
Dec
|
Communications services provider undergoes LDC-backed MBO | MBO/MBI
Message Direct, a communications services provider for SMEs ...
30
|
Mar
|
Sage’s former Newcastle HQ up for sale | COMMERCIAL PROPERTY
The former Newcastle headquarters of international software ...
10
|
Sep
|
Sage Group to sell its payment processing arm | BUSINESS SALE
Sage Group, the FTSE-100 technology firm which is thought to...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.