Group Press Releases
Sage announces sale of US Healthcare division to Vista Equity Partners
22 September 2011
The Sage Group plc (”Sage”) today announces that it has reached a definitive agreement to sell Sage Software Healthcare LLC (”Sage Healthcare”), its subsidiary offering practice management and electronic health record solutions to US physician practices, to Vista Equity Partners. The cash proceeds for the sale are $320m (£205m*) and the sale is expected to complete in November 2011. Sage intends to return all of these proceeds to shareholders through a share buyback programme.
Sage Healthcare’s reported revenue for the half year ended 31 March 2011# was £72m with EBITA† of £10m.
Guy Berruyer, Sage Chief Executive, commented:
“The sale of Sage Healthcare allows management in the North American region to focus on the considerable opportunities that exist within our core US customer base. We are also announcing a share buyback programme with the proceeds of the sale, reflecting our commitment to delivering shareholder value.”
The Sage Group plc +44 (0) 191 294 3068
Guy Berruyer, Chief Executive
Paul Harrison, Group Finance Director
Andrew Griffith, Investor Relations
Tulchan Communications +44 (0) 20 7353 4200
About the Sage Group plc
The Sage Group plc is a leading global supplier of business management software and related products and services, principally for small to medium-sized enterprises. Formed in 1981, Sage was floated on the London Stock Exchange in 1989. Sage has 6.3 million customers and more than 13,400 employees worldwide. We operate in over 24 countries covering the UK, Europe, North America, South Africa, Australia, India and China. For further information please visit www.sage.com
About Vista Equity Partners
Vista Equity Partners, a U.S. based private equity firm with offices in San Francisco, Chicago and Austin, currently invests nearly $5 billion in capital committed to dynamic, successful technology-based organizations led by world-class management teams with long-term perspective. Vista is a value-added investor, contributing professional expertise and multi-level support towards companies realizing their full potential. For further information please visit www.vistaequitypartners.com
Notes to editors:
Sage Healthcare’s revenue for the year ended 30 September 2010^ was £157m with EBITA of £31m. Gross assets at 30 September 2010 were £393m. The overall loss on disposal of Sage Healthcare is expected to be between £60m and £70m.
William Blair & Company is acting as financial advisor to Sage in the transaction.
* Sales proceeds have been translated based on the closing exchange rate on 21 September 2011 of $1.56/£1
# The results for Sage Healthcare for the half-year ended 31 March 2011 have been translated based on the average exchange rate for the period of $1.59/£1
^ The results for Sage Healthcare for the year ended 30 September 2010 have been translated based on the average exchange rate for the period of $1.56/£1
† EBITA is defined as earnings before interest, tax and amortisation of acquired intangible assets.
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