Monday 9 September 2019 6:59 pm

Sage kicks off sale of payments-processing business

Sage has lined up bankers to find a buyer for its payments-processing arm Sage Pay.

Investment bank Rothschild has been appointed to sell the business, which has around 50,000 small and medium sized business customers, Sky News reported.

Read more: Sage shares fall as it warns of slipping license software sales

It is unclear what the business could sell for, or if the bank has found much interest since it started the process weeks ago.

The news comes as Sage tries to transform itself into a cloud software firm which offers businesses accounting, human resources and payroll services.

The business represents a small part of overall group profits, Sky reported.

Sage did not immediately respond to request for comment. The company declined to comment to Sky.

In 2017, the company offloaded its North American payments business for $260m (£202m) as part of its plan to sell where the “strategic fit is not as strong as the rest of the business”.

And earlier this year it sold the US payroll division for £78m.

Read more: Sage profits soar as Stephen Kelly takes the reins as CEO

After nearly hitting a nearly 20-year high in July, Sage’s share price has dropped more than 15 per cent.

The fall was mainly due to a one-day 11 per cent drop at the end of July when it was revealed that software and software-related revenued had fallen sharply.