Sage Group PLC will sell its Sage Software Healthcare unit to private equity firm Vista Equity Partners for $320 million in cash, the British company announced this morning. The sale is expected to be completed in November.
Sage CEO Guy Berruyer said in a statement, “The sale of Sage Healthcare allows management in the North American region to focus on the considerable opportunities that exist within our core U.S. customer base.”
He was also quoted as saying, “When we bought this business, we could not have predicted that the Obama administration would change the market in the way it did. This business was contracting and it had moved away from our core strategy. Our North American business has been performing less well overall. Selling the healthcare business will allow our US team to concentrate on our business priorities again.”
Sage said it will take a loss of up to $108 million on the sale of the former Emdeon Practice Services, which it acquired for $565 million in August 2006. In the most recent six-month reporting period, the healthcare division earned profits of $15 million on revenue of $111 million.