Sage Sells its Payment Processing Arm to Chicago Private Equity Firm
Chicago-based private equity firm GTCR said it will buy Sage Payment Solutions, the Virginia-based merchant-services offshoot of U.K.-based Sage Group, for $260 million. Sage Group sells business software, and Sage Payment serves some 100,000 merchants.
Sage Payment sells credit card, ACH, check, gift and loyalty card processing services to small- and medium-size businesses in the U.S. and Canada. GTCR said it would commit up to $350 million in equity capital to fund new products and make other moves for Sage Payment. The deal calls for Sage Payment to become the preferred provider of merchant processing services for Sage Group clients.
Sage Payment “has a leading platform with robust software integrations in attractive end markets,” said Collin Roche, managing director at GTCR. “We intend to invest further in the technology and offer additional innovative solutions to SPS customers and partners.”