Sage shaves off GBP15mln from Brazilian sale

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Sage Group PLC (LON:SGE) expects to shave off GBP15mln of profits after spinning off its Brazilian business for up to GBP10mln via an auction process.


The Geordie accounting software company will receive an initial GBP1mln from the sale, with further payments of up to GBP9mln deferred.


READ: Sage surges as software subscription momentum continues


But a non-cash loss of GBP15mln will be taken on completion of the disposal, of which GBP11m reflects the reclassification of foreign exchange losses on the income statement.


Sage said the disposal was part of its strategy to focus on subscription software solutions and its ‘Business Cloud’ business.


Last year the Brazilian arm generated revenue of GBP53mln and an operating profit of GBP2mln.


In November Sage agreed to sell its merchant payment service business to US Bancorp for GBP232mln.

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