SOFTWARE giant Sage is selling off its US healthcare division for £205m and offering a share buyback programme with the proceeds of the sale.

The Newcastle-based group said the sale of Sage Software Healthcare LLC to Vista Equity Partners would allow it to concentrate on its main US business.

Sage Software Healthcare is used by US doctors to manage their practices and keep electronic health records. It reported sales of £72m and profits of £10m in the six months to March 31.

Private equity firm Vista has offices in San Francisco, Chicago and Austin.

Sage chief executive Guy Berruyer said: “The sale of Sage Healthcare allows management in the North American region to focus on the considerable opportunities that exist within our core US customer base.

“We are also announcing a share buyback programme with the proceeds of the sale, reflecting our commitment to delivering shareholder value.”

Sage, which operates in 24 countries worldwide and has 6.3 million customers and 13,400 staff, mainly supplies business management software to small and medium sized companies.