US Bancorp subsidiary Elavon has signed an agreement to acquire Sage Pay business from The Sage Group for about £232m in cash.

Sage Pay delivers payment gateway services in the UK and Ireland. The business recorded £41m in revenue and £15m in operating profit for the year ended 30 September 2018.

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The Sage Group announced plans to divest the payments arm in September this year.

Elavon operates as a merchant acquirer in Europe and facilitates international payments processing across several countries and currencies.

The deal is in line with Elavon’s strategy to help business customers become digital. Sage Pay will also boost Elavon’s presence in the UK and Ireland, primarily for small and medium-sized businesses.

Elavon president and general manager of Merchant Services, Europe Hannah Fitzsimons said: “We are a customer-focused company that is helping businesses succeed in a global marketplace that is changing rapidly.

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“This acquisition brings tremendous talent and leading technology to Elavon, which can be leveraged across the European market.”

The Sage Group said that the payment business will remain a partner after closing of the deal. The company estimates a statutory profit of nearly £180m from the divestiture.

Sage Group CEO Steve Hare said: “Payments and banking services remain an integral part of Sage’s value proposition and we will deliver them through our growing network of partnerships, including Elavon.”

This September, Elavon partnered with Featurespace to prevent fraud in online payments.