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The sale of seven products from Sage Group’s bulging portfolio will generate revenue of £93.4m (£81.9m in cash) as the business software company acts on its previously announced plan to rationalise its portfolio. The divestment is part of Sage’s action plan to restructure the business to double growth levels (to 6%) over a three year period.
The ACT! and SalesLogix CRM products are the most notable of the sold assets. Run out of North America, these acquired products have never been properly integrated into other Sage assets and have not received the investment needed to keep them on a par with other products in the CRM sector. They look very sparse compared to offerings from Salesforce.com and Microsoft for example. Maybe Sage partner and digital marketing software provider Swiftpage, who is buying the assets, will give them the love they lacked as part of the Sage family. As for Sage it is divesting itself of “non-core” products in order to release resources to invest in its designated growth areas – cloud, mobile, the XS ERP suite and SaaSy Sage One application. TechMarketView subscribers can see what we think of the move in the HotViewsExtra article Sage cuts around the core.
