Advertisement

Sage disposes of seven non-core products

Software giant The Sage Group is disposing of seven products it considers non-core units in a move to streamline business.

Software giant The Sage Group is disposing of seven products it considers non-core units in a move to streamline business.

The FTSE 100 company said it has reached an agreement to sell the products for an total price of £93.4m, of which £81.9m is payable in cash on completion.

The items include three from its North American division, namely Sage ACT!, Sage SalesLogix and the Sage Nonprofit Solutions, and four software suites from Europe; C&I, ATL, Automotive and Aytos.

Advertisement - Article continues below

"The sale of these non-core products is consistent with our strategy of focusing our business to accelerate growth and demonstrates significant progress in streamlining the portfolio, allowing regional management to focus on the considerable growth opportunities within their core markets," Chief Executive Guy Berruyer said.

Contact management software products Sage ACT! and Sage SalesLogix will be sold to Swiftpage. Sage Nonprofit Solutions, the group's vertical software solutions for not-for-profit organisations, will be bought by Accel-KKR.

The consideration is £64.8m in aggregate and £58.4m is to be paid in cash once the deal is finalised.

Sago will also receive a £1.9m seller note from Swiftpage and £4.5m in the form of a 16.1% equity stake in Swiftpage.

As at September 30th, 2012, the related gross assets were £243.1m and earnings before interest, taxes and amortisation (EBITDA) for the year came to £4.8m.

In Europe, Sage has received a binding offer from Argos Soditic for the sale of C&I, ATL and Automotive in France and Aytos in Spain. The £28.6m sale is subject to approval from the French Works Council.

Shares rose 0.93% to 336.70p at 11:48 Friday.

RD

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

House price crash: UK property prices are falling – so where next?
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020
How “support” and “resistance” can help you spot trading opportunities
Sponsored

How “support” and “resistance” can help you spot trading opportunities

Technical analysis can help traders manage risk and decide where to enter and exit a trade. One simple form of technical analysis is the concept of “s…
6 Jul 2020
The end of the bond bull market and the return of inflation
Inflation

The end of the bond bull market and the return of inflation

Central bank stimulus, surging post-lockdown demand and the end of the 40-year bond bull market. It all points to inflation, says John Stepek. Here’s …
30 Jun 2020