As Sage Group plc continues its strategic plan to simplify its offerings and focus on its core business, the business software vendor announced today it has disposed of several non-core assets in a deal worth US$101.2 million to long-time partner Swiftpage and technology-focused private equity investment firm Accel-KKR.
The sale involves three products managed from Sage North America (Sage Act, Sage SalesLogix and the Sage Nonprofit Solutions product suite) and four product suites in Europe (C&I, ATL, Automotive and Aytos).
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The deal is structured to see $91.2 million payable in cash to Sage upon completion of the sale, as well as a $3 million seller note and a 16.1 per cent equity stake in Swiftpage valued at $7 million. Sage said the cash proceeds will be returned to shareholders, and it will record a loss on disposal following completion of the transaction.
The Sage Nonprofit Solutions business is going to Accel-KKR, which also provided funding to Swiftpage to help it complete its deal. Swiftpage gets Act and SalesLogix.
“The acquisition of Sage Act and Sage SalesLogix is a game changer for Swiftpage, giving us a significant presence throughout North America and Europe with award-winning products for the small and medium-sized business markets,” said Swiftpage CEO John Oechsle in a statement. “We would not have been able to complete this complex transaction without the assistance of the team at Accel-KKR. We look forward to working with Accel-KKR to aggressively pursue the many growth opportunities available to us.”
Himanshu Palsule, CTO of Sage North America, added Sage will focus on its core business in accounting, ERP and payroll solutions for its small and midsize business customers.
“Sage has a strong partner channel to provide additional consultative and technology expertise for our customers, and we offer key integrations to our core including integrated payments and integrated CRM that further solidify lifetime value for customers,” said Palsule in a statement. “Sage remains fully committed to CRM with our Sage CRM product, expert staff employed across the globe, and continued investments to ensure our customers succeed.