By Brian F. Tankersley, CPA, CITP, CGMA
The Sage Group PLC (parent of Sage North America) announced the sale of three North American products to KKR-Accel and Swiftpage today for a total of $101.2 million, including $91.2 million in cash. The products to be sold include Sage Non-Profit Solutions, formerly referred to as MIP, the Sage SalesLogix CRM software, and the Sage ACT! small business contact manager. Amounts for each product were not disclosed. All three of the divested products were designated as “non-core” products by the Company in 2012.
Sage Non-Profit Solutions will be purchased by KKR-Accel, a Silicon Valley based private equity fund, and will be headed by CEO Krista Endsley, who was previously Vice President and General Manager of Sage Non-Profit Solutions. Sage Nonprofit Solutions (@SageNonProfit) has been serving nonprofit and governmental organizations throughout North America for more than 30 years, and currently supports over 32,000 unique not-for-profit organizations. A spokesperson reported that Sage Non-Profit Solutions will be run as a separate company focused solely on nonprofit and governmental technology.
CRM applications Sage ACT! and SalesLogix will be purchased by SwiftPage, and will be led by Dan Wilzoch, who is Sr. Vice President and General Manager for these two products. Swiftpage is an online marketing tool for small businesses, and is currently sold by Sage to existing customers as Sage E-Marketing for Sage ACT! and Sage SalesLogix. As part of the sale, Sage will receive a 16.1% stake in SwiftPage, which was valued at $7.0 million.
An e-mail sent this morning informed Sage partners that “Sage is now focused on a single flagship CRM solution worldwide, Sage CRM, to address the CRM requirements of small to mid-sized businesses.”
The Sage Group plc (LN:SGE) is a leading global provider of business management software to small and medium sized companies. Sage has over 6 million customers and more than 13,500 employees in 24 countries across the world.