Sage, the groundbreaking accounting software provider recently announced plans to sell Sage Pay—its retail services division?
The company admitted it has plans to let go of Sage Pay after word begun going around that it had formed ties with Rothschild bank to market the division.
Though Sage Group maintains there’s no surety that these ties will end in a deal, the firm already sold out its United States Payroll platform known as Sage Payroll Solutions, in a transaction that ended back in February this year.
The group flogged its payroll business at around £78m recording a £27m profit on the sellout according to unrevealed financial records. However, it has not yet publicized its target amount for Sage Pay business.
From a wider perspective, Sage Pay is a small fry for a company as large as Sage Group. In fact, its most recent set of unconfirmed financial records show a total revenue of a whopping £941m in 2019’s first half. This figure represents a 6.2% increase from the previous result.
Looking at Sage Pay’s last year performance in Europe, we see £32.86m in revenue. And this represents a rise from £28.69m in 2017. Profits also went up from the previous year’s £16.3m to £18.54m.
Britain contributed to a larger share of the division’s revenue jumping to £27.1m. Europe recorded a slight uptick from up from £4.0m to £4.93m in the previous year. However, it seems like Sage Pay’s international prowess dwindled as it recorded a drop from £0.92m to £0.82m. Maybe that explains why getting rid of it may be a good idea.
Final Words
Whether Rothschild investment bank will be the new face of Sage Pay or the Group has an undisclosed acquirer remains as secret as the gains it targets from the looming sale.
It seems like everything about Sage Group is hush-hush. However, after a sagepay review, analysts have noticed an upward trend in the firm’s growth and some feel that flogging its merchant service division is a strategy to do away with its foot-dragging wings.
Author Bio: Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of merchantservices. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie in his backyard porch, as should all right thinking people.
