September 10 2019 @ 15:15 by Steven Hugill
An international software company founded in the North East could offload a division in a restructuring of its operations, bosses have revealed.
Officials at Sage Group say they are assessing options for the company’s Sage Pay business.
According to a stock market update, Sage Pay could be sold to a new suitor, though the company cautioned no deal has yet been agreed, adding a sale is not inevitable.
Sage Pay is used by retailers of varying sizes to process millions of secure payments every month.
Referring to Sage’s plan for the division, a spokesperson said: (The company) confirms it is evaluating potential strategic options for this business, including a sale.
“There can be no certainty that this evaluation will lead to any transaction.”
Founded in Newcastle in 1981, Sage listed on the London Stock Exchange in 1989 and began entering international markets in earnest from the early 1990s.
Today, the firm, which runs operations from Newcastle’s Great Park, serves millions of customers across countries in mainland Europe, Africa, Australia, Asia and Latin America.
According to latest financial results for the nine months to June 30, revealed in late July, group organic total revenue increased by 5.3 per cent to £476 million in the third quarter and 5.9 per cent to £1.4 billion in the first nine months of the year.
Recurring revenue increased by 11.4 per cent to £405 million in the third quarter and 10.6 per cent to £1.18 billion for the first nine months of the year.
Bosses said the rises were underpinned by software subscription growth of 28.3 per cent to £752 million.