Software company Sage Group is selling its payment processing unit Sage Pay for around £232m (US$296.9m) to Elavon, a payments company and unit of US Bancorp.
Recently there have been deals in the payment systems with Fidelity National Information Services’s buyout of Worldpay for around US$35bn earlier this year. In January, US-based Fiserv bought payment processor First Data Corp for US$22bn.
Sage Group expects a statutory profit on the disposal of around £180m, following completion of the deal. The disposal comes more than two months after the company first said it was looking into potential options for its payments arm.
Elavon says: “The acquisition extends Elavon’s market share in the UK and Ireland, particularly for small and medium-sized enterprises where Sage Pay is a highly-trusted payments gateway with a loyal customer base.”
Sage Group also agreed to sell its US payroll outsourcing business earlier this year for £78m, as part of its strategy to focus on subscription services by moving more products to the cloud.