Sage to sell Brazilian business for up to £10m

Sage said on Monday that it has agreed to sell its Brazilian business to local management for up to £10m.

The software company had already announced in its full-year results in November that it was holding the business for sale. The group said the disposal was part of its strategy to focus on subscription software solutions that are in or have a pathway to the Sage Business Cloud.

For the year ended 30 September 2019, the Brazilian business achieved revenue of £53m and operating profit of £2m.

Sage said it expects to report a statutory non-cash loss on disposal of £15m on completion, of which £11m reflects the reclassification of foreign exchange losses from other comprehensive income to the income statement.

The deal is expected to complete within the next two months.