UK accounting software firm Sage sold its operations in Brazil to the president of the local business, Jorge Carneiro, in a deal that could reach a total of £10 million.
The sale will see Carneiro, who had been leading Sage since 2014 and was previously CEO at Sage Portugal for 15 years, paying £1 million in cash for the business, with up to £9 million due under undisclosed terms and conditions. The deal should complete in May.
"Now we will have more independence and, consequently, speed to lead the business focusing on the needs of Brazilian companies. I really believe in the company, our team, the Brazilians and the country's potential," says Carneiro.
Going forward, the company will continue to focus on its current product portfolio, focused on accountants, small and medium-sized companies as well as IOB, a consulting firm specializing in accounting, tax and labor, which is part of the company's Brazilian operations.
According to a note to investors on the disposal of the Brazilian business, the operation had revenues of £53 million in the fiscal year ended September 2019, a small drop from the previous year's result of £54 million. In the same period, the company also turned around losses of £7 million, into an operating profit of £2 million.
The sale follows a strategic review carried out in late 2019, which concluded the Brazilian business "largely sells solutions which have no path to Sage Business Cloud" and is part of the company's strategy to focus on subscription software solutions that are in or have a pathway to its main product suite.