LONDON (Alliance News) - Sage Group PLC said Tuesday it entered a sale agreement to dispose of its outsourcing business, Sage Payroll Solutions, to iSolved HCM LLC.
Sage will sell the division for GBP78 million, of which GBP73 million will be paid in cash on completion. The remaining GBP5 million represent a contingent consideration, the company added.
The company expects to report a statutory profit on disposal of GBP23 million at the end of the divesting process.
This divestiture is part of Sage's strategy to focus on subscription software solutions related to the Sage Business Cloud.
Sage Group shares were trading up 0.5% at 595.00 pence each.
Sage Group (SGE)