Sage sells subsidiary to fund share buyback
Accountancy IT behemoth sells US subsidiary for $320m (£205m) to finance a share buyback scheme
ACCOUNTANCY SOFTWARE giant Sage has disposed of its Sage Healthcare division for $320m (£205m) and is to use the funds to finance a share buyback scheme.
FTSE 100 Sage sold its US subsidiary which allows American GPs to store electronic health records to Vista Equity Partners.
The deal is due to be completed in November this year with a statement from the company explaining that “Sage intends to return all of these proceeds to shareholders through a share buyback programme”.
Guy Berruyer, (pictured) Sage CEO, said: “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.
“We are also announcing a share buyback programme with the proceeds of the sale, reflecting our commitment to delivering shareholder value.”
Sage Healthcare’s reported revenue for the half year ended 31 March 2011 was about £72m.
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