Sage North America spent an unusual amount of energy and time trying to persuade both customers and channel partners that their July 17, 2012 Sage UK investor day announcement outlining core and non-core categories of products did not necessarily indicate a much slower path for some North America products which had been designated as non core.
Some prospects, worried about the negative press and competitor coverage these Sage proclaimed non-core products have gotten were able to obtain a comfort letter from Sage about how much the products are loved, have strong demand and continue to be invested in.
While the letter stops short of promising that the products in question (namely Sage SalesLogix, Act! and MIP) would not be disposed/sold/sunset – it did call into question “competitors who are spreading a great deal of uncertainty and doubt” while adding “we continue to invest heavily in our Sage SalesLogix and Sage ACT! businesses”.
Today Sage UK announced the sale of Sage SalesLogix, Act! and MIP to an investment company and Swiftpage for $101 million. The Sage UK announcement is here. The Sage FAQ is here. Swiftpage announcement here.
Doing some quick math – Sage UK announced that the CRM and Non Profit sales fetched £64.8m* ($101.2 m) (64.8 / 101.2 = $1.5617 exchange rate seems to have been used) and the net assets were £243.1m ( 243.1 x 1.5617 = $ 379.65 m) (exchange rate used 1.5617) which at first glance seems to imply a write down that might be close to $101.2 – $379.65 = $278.45 million.