The Sage Group plc, parent of Sage North America, said Thursday that it has reached a definitive agreement to sell Sage Software Healthcare, its subsidiary that offers practice management and electronic health record solutions to U.S. physician practices.
San Francisco-based Vista Equity Partners, has agreed to purchase the unit, with cash proceeds for the sale totaling $320 million (205 million pounds). The sale is expected to be completed in November 2011, according to the U.K.-based company’s group press release.
“The sale of Sage Healthcare allows management in the North American region to focus on the considerable opportunities that exist within our core U.S. customer base,” Sage chief executive Guy Berruyer said in a statement. “We are also announcing a share buyback program with the proceeds of the sale, reflecting our commitment to delivering shareholder value.”
Sage will make a loss of up to $108.4 million (70 million pounds) through the sale and redistribute cash proceeds of $320 million to shareholders by buying back shares. Vista Equity has approximately $5 billion invested in technology companies, including library software developer SirsiDynix.
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