Sage Group to sell payments business to Elavon for $300M
U.K. software company Sage Group Plc has entered into an agreement to sell its Sage Pay business to Elavon Financial Services, in an all-cash deal worth about 232 million pounds ($300 million).
Sage said in a statement Monday it expects the sale to close in the first quarter of 2020, and that the company would remain a partner under Elavon’s ownership.
“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,” said Sage Chief Executive Officer Steve Hare.
Elavon is a global merchant acquirer and subsidiary of U.S. Bancorp, headquartered in Atlanta.
The announcement of the deal follows the sale of Sage’s payroll operation business in January, and its U.S. payments software division in 2017. The Newcastle, England-based company develops, publishes and distributes accounting and payroll software, and is trying to bolster its subscription-based cloud business by offloading tertiary products.
Shares of Sage have gained about 25 percent for the year to date through Friday’s close.