GTCR Buys Sage North American
Payments Business for $260M
June 5, 2017
Sage has reached a definitive agreement to sell its North American
Payments business, a provider of bank card processing, ACH, cheque and
gift and loyalty card services, to GTCR. The divested business will
continue to be an important partner for Sage and a key provider of
integrated payment services to Sage customers.
The enterprise valuation for the transaction is $260m (£202m) of which
$240m is payable as cash on completion and the remaining $20m as
deferred consideration. As a partner to SPS, Sage will continue to
receive a revenue share from joint Sage and SPS customers.
The transaction is subject to certain
completion conditions and is expected to complete in the next 3 months.
Proceeds will be used to reduce net debt and invested in growth.
SPS's reported revenue for the year ended 30 September 2016 was £130m
with operating contribution of £34m.
Kelly, Sage’s CEO commented: “We recently outlined our updated payments
and banking strategy which included exiting areas of the payments market
where the strategic fit is not as strong as the rest of the business,
whilst continuing to build on our growing network of partnerships within
the payments and banking sector. This strategy will allow us to enhance
and extend our payments capabilities to all our major geographies,
strengthening our golden triangle of accounting, people & payroll and
payments & banking.
Today’s announcement to sell the SPS business and partner with the
divested business backed by GTCR reinforces this strategy, allowing our
North American business builders to continue to access their current
payments and banking technology, supported by the renewed investment
This announcement contains inside information. The person responsible
for arranging for the release of this announcement on behalf of Sage is