Sage has announced the sale of its North American payments business to private equity firm GTCR for £202m.
Explaining the sale, CEO Stephen Kelly said:
“We recently outlined our updated payments and banking strategy which included exiting areas of the payments market where the strategic fit is not as strong as the rest of the business, whilst continuing to build on our growing network of partnerships within the payments and banking sector. This strategy will allow us to enhance and extend our payments capabilities to all our major geographies, strengthening our golden triangle of accounting, people & payroll and payments & banking.
“Today’s announcement to sell the SPS business and partner with the divested business backed by GTCR reinforces this strategy, allowing our North American business builders to continue to access their current payments and banking technology, supported by the renewed investment from GTCR.”
The company said that the divested business will continue to play an important part of the Sage business as a partner and a provider of integrated payment services to its customers.
The transaction is expected to be completed in the next three months, subject to certain completion conditions, and proceeds will be used to reduce net debt and will be invested in growth.