Sage Group is to sell its US-based payroll outsourcing business for £78 million.

The North East software giant is to dispose of Sage Payroll Solutions to iSolved, a portfolio company of private equity house Accel-KKR and a provider of human capital management solutions.

SPR had revenue of £38m and operating loss of £1m for the year ended 30 September 2018.

Sage said it expects to report a statutory profit on disposal of approximately £23m on completion.

“We are focused on driving growth within our cloud native products, and products which have a clear path to Sage Business Cloud,” a Sage spokesperson told BusinessCloud.

“The US Payroll Outsourcing team has a strong brand and market position, but does not have a clear route to the Sage Business Cloud, so we have chosen a different route to create value for our shareholders in line with our strategy.

“We wish the team well under their new parent.”

Accountancy software company Sage appointed an experienced finance veteran as its new chief financial officer in December having named a new CEO in November.

The Newcastle-headquartered company generated revenue of £1.85 billion in the 12 months to 30 September 2018, an increase of 7.6 per cent from a year earlier.