Newcastle-based cloud software giant Sage Group, the UK’s largest listed tech company, said on Monday it agreed to sell its Sage Pay business to Elavon, a global payments company and subsidiary of U.S. Bancorp. 

For the year ended September 30, 2018, Sage Pay had revenue of £41 million and operating profit of £15 million.

“The total sale consideration is approximately £232m, payable in cash on completion (subject to a customary debt and working capital adjustment),” said Sage.

“Sage expects to report a statutory profit on disposal of approximately £180m on completion.

“Completion of the transaction is subject to Elavon obtaining regulatory approval by the Board of Governors of the Federal Reserve System in the United States as well as the Central Bank of Ireland, and is expected to occur in Q2 FY20.”

Sage CEO Steve Hare said: “Our vision of becoming a great SaaS company for customers and colleagues alike means we will continue to focus on serving small and medium sized customers with subscription software solutions for Accounting & Financials and People & Payroll.

“Payments and banking services remain an integral part of Sage’s value proposition and we will deliver them through our growing network of partnerships, including Elavon.”