North East software giant Sage Group plc is selling its US-based payroll outsourcing business for £78m.
The Newcastle-headquartered company announced in November that it was looking to sell its Sage Payroll Solutions arm.
Sage has now signed a deal to transfer ownership of the business to workforce management software maker iSolved, a portfolio company of tech-focussed private equity house Accel-KKR.
The transaction, Sage said, it part of a strategy to focus on subscription software solutions that are either in, or have a pathway to, the Sage Business Cloud.
Sage Payroll Solutions generated revenues of £38m with an operating loss of £1m in the year to September 30 2018.
The deal is expected to complete in the next three months. Proceeds raised will be invested for growth and used to lower net debt.
It follows the appointment of a new chief executive officer at Sage Group.
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