UK software firm Sage Group is set to sell its payments arm Sage Pay for around £230m to Elavon, a payments firm and unit of US Bancorp.
Sage Pay is a major provider of payment services in both the UK and Ireland. Announcing the deal, Sage Group said: “The divested business will remain an important payments partner for Sage after completion.”
Newcastle-based Sage said the deal would boost its profit this year. The software firm said it expects to report a statutory profit of around £180m after the deal.
For the year ended September 2018, Sage had operating profit of £15m and revenue of £41m.
The completion of the deal is subject to Elavon obtaining approval by US regulators.
Sage chief executive Steve Hare said: “We will continue to focus on serving small and medium sized customers with subscription software solutions for accounting and financials and people and payroll.”
“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.”
Hannah Fitzsimons, president and general manager of Elavon Merchant Services in Europe, said: “We are a customer-focused company that is helping businesses succeed in a global marketplace that is changing rapidly.”
“This acquisition brings tremendous talent and leading technology to Elavon, which can be leveraged across the European market.”
Declan Lynch, chief executive of Elavon Financial Services, said: “We are thrilled to bring the talents and capabilities of Sage Pay employees to Elavon, where they will be an integral part of our company that is investing in the future.”
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