Sage Group to sell its payment processing arm

Tue, 10 Sep 2019 | BUSINESS SALE



Sage Group, the FTSE-100 technology firm which is thought to be the biggest in the UK, has decided to sell Sage Pay, the payment processing division which caters to thousands of SMEs customers.

Headquartered in Newcastle, the company has hired investment bank Rothschild to find buyers for Sage Pay, which is known to have an estimated 50,000 small business customers.

However, in spite of a solid customer base, a source close to the company revealed that Sage Pay only accounted for a small fraction of the group’s total sales and profits.

Details of Sage Pay’s valuation and potential buyers have yet to be revealed to the public, but those handling the sale at Rothschild have encouraged all interested parties to come forward. The bankers have anticipated interest from a number of other payment firms, as well as private equity companies.

The move to sell Sage Pay follows the group’s decision to sell its payments software division in the US in 2017, and its payroll division in January this year. The strategic decisions are in line with industry takeover activity, which has risen in recent years due to platforms opting to merge and acquire companies within the payments sector.

The group is focusing its efforts on transforming itself into a cloud software firm which provides human resources, accounting and payroll services for business consumers. The company appointed Steve Hare as its new chief executive last year in an attempt to make the shift.

However, Sage disclosed a significant fall in software and software-related revenues, forcing its shares to fall by 11 per cent at the end of July – the steepest decline in a single day in 16 years.


Share this article



Latest Businesses for Sale

Online Video management & Monetisation Platform
London, UK

Highly Profitable Company Specialising in the Monetisation of Online Music, Film and TV Video Content. Impressive Client Base that Includes Globally Recognised Brands and Artists. Experts in Content Management, Rights Management and Monetisation of O...

Asking Price: Offers Invited
Turnover: £2,700,000

Visual Display Solutions
UK Wide

An independent provider of specialist visual display solutions, focusing on the delivery of effective. Specialises in the delivery of innovative solutions with military, marketing and recreational applications. Established over 15 years and highly re...

Asking Price: Offers Invited
Turnover: £470,000

LEASEHOLD


Provider of IT Solutions to Independent Schools & Colleges
South of England, UK Wide

Serving independent schools and colleges across Southern England, the company utilises best of breed technologies to deliver optimised IT solutions and infrastructure, in addition to cyber security and managed support services. With all systems suppo...

Asking Price: Offers Invited
Turnover: £3,385,000


View more businesses for sale

News Search

Latest News

 
05
 
Dec
 

What a Labour government would mean for UK entrepreneurs | BUSINESS NEWS

Private business mergers and acquisitions expert Sue Green o...

 
05
 
Dec
 

MBO at Bolton-based delivery comparison firm | MBO/MBI

Bolton-based parcel delivery price comparison company Parcel...

 
04
 
Dec
 

Merger between Southampton IT providers | MERGER

Southampton-based IT providers Aura Technology and Amicus IT...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources