The Channel logo

News

By | Brid-Aine Parnell 22nd September 2011 09:30

Sage sells off US healthcare biz

UK software firm offloads US unit, gives back to its shareholders

British software firm Sage is selling off its US healthcare unit to a private equity firm for £205m so it can focus on its core American customer base.

The proceeds from the sale will be given back to shareholders through a share buyback programme, the Geordie small business provider said. The sale is expected to be completed in November this year.

"The sale of Sage Healthcare allows management in the North American region to focus on the considerable opportunities that exist within our core US customer base," Sage chief exec Guy Berruyer said in a canned statement.

In May, Sage announced that it had returned to growth for the first time in a year or so as small businesses started to recover from the economic downturn. At the same time, the software outfit said it was continuing to look for acquisition opportunities.

Sage tried to get its hands on Australian accounts provider Mind Your Own Business (MYOB), but lost out to private investment firm Bain Capital in August over fears it wouldn't be able to get shareholder approval. ®

comment icon Read 1 comment on this article alert Send corrections

Opinion

Alexandre Mesguich

Change is order of day as tech giants shift strategy gears
Partnership

Frank Jennings

Confused? No problem, we have 5, no 6, no 7... lots of standards

Chris Mellor

VC sequence could end not with a bang, but a whimper
Sad man stares glumly over boxed contents of desk. Image via shutterstock (Baranq)

Features

money trap conceptual illustration
Big boys snare the unwary with too-good-to-be-true deals
Angus Highland cow
Pet carriers not wanted for whitebox stampede
FBcoldstoragearray
Sorry OpenStack and Open Compute, we're not all Facebook
Gary Kovacs, CEO of AVG. Pic: World Economic Forum
Scammy download sites? Government snooping? Run of the mill for Gary Kovacs