Sage sells healthcare biz to fund buybacks

22nd Sep 2011 07:49

Accountancy software titan Sage is to get shot of its Sage Software Healthcare subsidiary for $320m (£205m), and use the money to finance a share buyback.The business, which offers practice management and electronic health record solutions to US physician practices, is being sold to Vista Equity Partners.In the half-year to March 31st, 2011, Sage Healthcare reported revenue of £72m and earnings before interest, tax and amortisation of £10m."The sale of Sage Healthcare allows management in the North American region to focus on the considerable opportunities that exist within our core US customer base," explained Guy Berruyer, Sage's chief executive officer. "We are also announcing a share buyback programme with the proceeds of the sale, reflecting our commitment to delivering shareholder value," Berruyer added.--jh