Sage Group PLC said Thursday it would sell its health care business to the U.S. private equity firm Visa Equity Partners for $320 million in cash. The business, Sage Healthcare, markets electronic health record and practice management software to U.S. doctors.
The proceeds of the sale, expected to close next month, will be given back to shareholders through a share buy-back program, the company said.
Sage originally bought the business just five years ago for $565 million from Emdeon Corp. Reported sales for Sage's health unit for the half year ending March 31 totaled $110 million.
"The sale of Sage Healthcare allows management in the North American region to focus on the considerable opportunities that exist within our core U.S. customer base," Guy Berruyer, Sage's chief executive, said in a statement. "We are also announcing a share buyback programme with the proceeds of the sale, reflecting our commitment to delivering shareholder value."
Sage, which makes business software, is headquartered at Newcastle upon Tyne, U.K.
