Newcastle-based software giant Sage Group said on Monday it agreed to sell its Brazilian business to local management, following an auction process.

“This divestiture is part of Sage’s strategy to focus on subscription software solutions that are in or have a pathway to the Sage Business Cloud,” said Sage.

“For the year ended 30 September 2019, this business achieved revenue of £53m (FY18: £54m) and operating profit of £2m (FY18: loss of £7m). 

“The sale consideration is approximately £1m payable on completion, plus deferred consideration of up to £9m.

“Sage 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 transaction is expected to complete within the next two months.”