Sage Pay is acquired by US payments giant, as sage looks to focus on cloud-based accounting
Sage Pay was purchased by Elavon, a US merchant-processing outfit, for a reported sum of £232 million (approximately $300 million).
TechCrunch reported that the Sage group, said that the acquisition is progressing for the above mentioned amount in cash, although the buy-out is still subject to customary regulatory review before it actually happens (the deal should close sometime in the second quarter of next year, if all goes well).
Sage Pay is a popular payment gateway-business for SMEs in the UK, and it is Elavon’s existing offerings and integrated international processing platform to join an Empire that spans the globe, and some 30+ countries.
Elavon is a subsidiary of U.S. Bancorp – notes that it is currently the fourth largest merchant acquirer in Europe, and the record of Sage Pay, you extend the reach of the company in the UK and Ireland.
Hannah Fitzsimons, president and general manager of Elavon Merchant Services, Europe, commented: “This acquisition brings tremendous talent and leading technology to Elavon, which can be used in the whole of the European market.”
Elavon has something like 1.3 million customers worldwide, and is obviously looking to extend that number, with Europe seems to be a solid target. The company processes more than five billion transactions a year.
As noted by TechCrunch, the move points to a trend of consolidation in the broader e-commerce market, as the Juggernaut for companies to pick up smaller players in an effort to hard drive for better overall performance in terms of economies of scale”.
The sell-off is no surprise, given that sage has previously said that it is to re-evaluate its overall strategy in relation to the payment business, and are looking to concentrate more, instead of on the cloud-based accounting side of its operations (such as the well-liked, Sage Small Business Accounting subscription service that offers benefits, including integration with Microsoft Office 365).
Released on Mon, 18 Nov 2019 13:50:31 +0000