This division, which they purchased in 2006 for $ 565 million, will be sold to Vista Equity Partners. The announced cash proceeds for the sale are $320m (£205m*) and the sale is expected to complete in November 2011. Sage will redistribute the proceeds as a share buyback.
According to Sage UK Chief Executive Guy Berruyer:
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. We are also announcing a share buyback programme with the proceeds of the sale, reflecting our commitment to delivering shareholder value.
As recently as July 2011 Sage Healthcare President Betty Otter-Nickerson was quoted as looking to build the reseller channel for Sage Healthcare which she said was 15 firms with a goal of doubling the number of resellers by September 2011.
Sage had been looking to sell the Healthcare division since at least May 2011 when Bloomberg reported that the division was in review but strategic advisors had not yet been hired.