Sage has announced the disposal of its US Payroll business for around £78 million. It has sold the subsidiary SPR to iSolved HCM, LLC. The deal will see iSolved add 44,000 small to mid sized businesses as customers. iSolved is owned by KKR Accel and Rob Palumbo, managing director at Accel-KKR commented: “SPR has a long-standing reputation of providing small- and medium-sized companies with superior payroll solutions. We look forward to adding this business to the iSolved portfolio, thus extending iSolved’s market-leading position.”
The transaction will cost iSolved approximately £78 million. £73 million on close and £5 million subject to certain conditions.
Enterprise Times: What does this mean
iSolved is a player in the SME HCM market. The deal will raise its importance in the market and certainly should boost its ability to cross sell its HCM software into those SME’s. The challenge will be to actually leverage the relationship and it will take time to communicate and open a dialogue with those organisations.
For Sage this is the completion of a strategic plan that has seen it continue to divest non core businesses. It still retains its Payroll business in the UK, and has insisted that will not change. However, if someone puts in an offer will it rethink that?