£250m cash boost for Sage with disposal of payments processing business

Financial software firm The Sage Group has announced it plans to raise £250m capital from the sale of its payment processing business.

In its results for the year ending September 30, the firm has announced plans to dispose of Sage Pay, estimating a boost of £250m for the group.

The firm reported a 5.6 per cent increase in organic total revenue growth, with a drop in organic profit of 13 per cent.

Steve Hare, Sage CEO, commented: “We’re very encouraged by the acceleration in recurring revenue in FY19. We entered the year with momentum and added sequential ARR every month in the year, putting us further ahead in our transition to Sage Business Cloud than anticipated.

“We’ve also made significant progress in our strategic execution, particularly in the development and roll out of our cloud offerings and the reshaping of our portfolio.

“We will continue to prioritise high quality recurring revenue growth over SSRS, and whilst we do not expect a linear progression in financial performance during this multi-year transition, our recent strong performance and continued progress towards becoming a great SaaS company means that we look forward with confidence.”

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