Newcastle-based global enterprise software company Sage has confirmed that it will be selling its healthcare business to a private investment company.
Sage confirmed the $320m (£205m) sale of the business unit to US-based Vista Equity Partners on Thursday. Sage's healthcare software allows US physicians to manage their practices and electronically file patient health care records.
The company intends to return the all-cash proceeds of the sale to shareholders through a share buyback programme and hopes the sale of the unit will allow the US management to focus on "the considerable opportunities that exist within our core US customer base," Sage chief executive, Guy Berruyer, said in a statement.
The unit reported half year revenue — ended 31 March — of around £72m and its gross assets totalled £393m. As a result, Sage said it expected disposal of the unit to cost between £60m and £70m.
In August, Sage's bid for Australian software rival MYOB failed when private equity firm Bain Capital bid $1.3bn for the company.