FTSE 100 accounting software supplier Sage has revealed it is considering selling off its US payments business, which has been delivering faltering revenues, as the company bids to reposition itself through a transformation programme based on streamlining costs and introducing new technologies
In a statement to the stock exchange, Sage said: ‘the Group notes recent media speculation and confirms that it is evaluating potential strategic options for its North American payments business, including a sale. There can be no certainty that this evaluation will lead to any transaction.’
At the end of November, in its presentation of its audited results for the year ended 30 September 2016 Sage reported ‘accelerating’ revenue growth in Europe, Africa and Brazil; slower performance in Asia (one off regulatory change in the prior year), but said ‘ growth in North America was ‘consistent with last year’.
In his review of the results, Stephen Kelly, Sage CEO, said: ‘Strong revenue growth of 7% in Europe (10% recurring revenue) and 8% (16% recurring revenue) in international has been balanced by 4% revenue growth (9% recurring revenue) in North America, due mainly to challenges in the Payments business.’
Kelly, who was appointed two years ago, has been heading a turnaround plan at the software company, which is shifting from selling one-off licences to a cloud-based delivery model.
