REG - Sage Group PLC - Disposal of Brazilian business

SageAnnouncement

02/03/2020 07:00

RNS Number : 5892E
  
Sage Group PLC
  
02 March 2020
  
 

 
Disposal of Brazilian business
2 March 2020
In its full year results announcement on 20 November 2019, The Sage Group plc ("Sage") announced that it was holding its Brazilian business for sale. Sage today announces that, following an auction process, it has entered into an agreement for the sale of its Brazilian business to local management. 
This divestiture is part of Sage's strategy to focus on subscription software solutions that are in or have a pathway to the Sage Business Cloud.
For the year ended 30 September 2019, this business achieved revenue of £53m (FY18: £54m) and operating profit of £2m (FY18: loss of £7m).  The sale consideration is approximately £1m payable on completion, plus deferred consideration of up to £9m. Sage expects to report a statutory non-cash loss on disposal of £15m on completion, of which £11m reflects the reclassification of foreign exchange losses from other comprehensive income to the income statement.
The transaction is expected to complete within the next two months.
 
Enquiries
The Sage Group plc +44 (0) 191 294 3457
James Sandford, VP, Investor Relations 
Amy Lawson, EVP Communications
Derk Bleeker, Chief Corporate Development Officer
 
FTI Consulting +44 (0) 20 3727 1000
Charles Palmer
Dwight Burden
 
About Sage
Sage is a global market leader for technology that helps small and medium businesses perform at their best. Sage is trusted by millions of customers worldwide to deliver the best cloud technology and support, with our partners, to manage finances, operations, and people. We believe in doing everything we can to help people be the best they can be, so the combined efforts of 13,000 Sage colleagues working with businesses and communities make a real difference to the world. 
Sage. Perform at your Best.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
  END
 
 
DISFLFIRVSILIII