Sage (SGPYY) , the British software group, said Wednesday that it's considering a sale of its North American payments business.
The U.K.'s second biggest software firm after ARM Holdings (ARMH) said it was "evaluating potential strategic options" for the business but "there can be no certainty that this evaluation will lead to any transaction."
Sage's shares added 0.2% in the opening hour of London trading to change hands at 619 pence each, although the stock has only gained 2.65% since the beginning of the year.
In the November, the company said that there were challenges in the payments business, which saw just 4% revenue growth in the year ended Sept. 30, 2016, compared with the previous year.
In its full-year earnings released last month, the Newcastle, England-based company, which offers software for accounting, HR and business management, said revenue advanced 6.1% to £1.57 billion ($1.96 billion). Operating profit margin expanded to 27.2% from 26.5%.
The North America business accounted for £450 million of revenue in the year and the payments product saw revenue of £116 million.
Sage attributed revenue growth to a 32.3% jump in subscriptions, accelerating from a 28.9% increase in the previous year, reflecting the company's transition from SSRS.
The company is in the midst of a transformation program. It has amassed £51 million in cost savings over the year and expects to make a similar amount in the next financial year. The program will weigh on profits next year with the costs expected to reach £100 million.
Sage said it expects to launch 27 new cloud-based products in the next 12 months.