(Reuters) - Sage Group Plc (SGE.L) said on Tuesday it would sell its U.S. payroll outsourcing business for 78 million pounds ($100.08 million) as part of the software provider’s strategy to focus on subscription services by moving more products to the cloud.
The unit, which had an operating loss of 1 million pounds in 2018, is being bought by U.S.-based iSolved HCM, a provider of HR management tools to small and mid-sized companies.
Of the total deal value, 73 million pounds will be paid in cash on completion, while the rest represents contingent consideration. (bit.ly/2HmbtJo)
Proceeds from the sale will be used to reduce the company’s debt, Sage said.
Sage expects to report a profit of about 23 million pounds on completion of the disposal, expected to occur within the next three months.
Reporting by Tanishaa Nadkar in Bengaluru; Editing by Shailesh Kuber