Sage in trouble in the US?

by admin on July 16, 2007

in General

Last Friday, Andy Corbin, who ran Sage’s acquired Emdeon unit was given the heave ho. In a perfunctory statement, Sage said:

The Sage Group plc (‘Sage’) announces that Andrew Corbin has resigned from his position of President and Chief Executive Officer, Sage Software Healthcare…Ron Verni, Chief Executive Officer, Sage North America and a director of The Sage Group plc, becomes Acting President and Chief Executive of the division with immediate effect.

At the time of the acquisition, I speculated that it was a tad rich. At the last half report, I said:

The company is clearly experiencing challenges in the North American market, which now accounts for 44% of total revenue. Growth was a sluggish 4% and Sage has announced a significant reorganisation as it seeks to digest the Emdeon acquisition…

In comments, Jason Carter noted that Sage’s track record for CRM is hardly sparkling.

Investors have not been happy either. The share price has been tracking below the FTSE 100 since April.
It would now seem that Mr Corbin wasn’t up to snuff as far as Sage is concerned and has paid the price. It will be interesting to see what happens over the next few months.

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