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Enterprise

Tech giant Sage sells off Asia and Australia business for £95m then buys stake in ecommerce firm

The deals are the latest by the Newcastle company as it seeks to concentrate on cloud-based services

Sage, at the Great Park, Gosforth.(Image: Newcastle Journal)

Newcastle tech giant Sage has successfully sold its Asian and Australian business for just under £100m, and followed the deal with an investment in an online retail company.

The accountancy software firm has sold its Asia and Australia business for £95m to The Access Group.

During the year ending September 30 2020 the off-loaded business brought in revenues of £48m and generated an operating profit of £6m. In 2019 the business brought in £48m in turnover and £5m in operating profit.

As part of the deal Sage will retain a number of its global products.

In a statement to the London Stock Exchange, Sage said: “In its full year results announcement on 20 November 2020, The Sage Group plc announced that its businesses in Asia and Australia (excluding global products) were held for sale. Sage today announces that it has entered into an agreement for the sale of these businesses to The Access Group.”

It added: “Sage is retaining its global products that are core to its growth strategy including Sage Intacct, Sage People and Sage X3.

“The transaction, which is subject to approval by the Australian Foreign Investment Review Board (FIRB), is expected to complete in the next six months.”

Today’s deal is the latest carried out by Sage as it continues to sell of its non-core businesses. The tech firm is restructuring its business to focus on its core cloud software.