By Niket Nishant

(Reuters) -Global Payments will sell its medical software business, AdvancedMD, to investment firm Francisco Partners for $1.13 billion, the companies said on Wednesday, as the financial technology firm slims down to focus on its core operations.

Its shares were up nearly 4%, as the company also unveiled a $600 million accelerated stock buyback plan using part of the deal proceeds.

“This disposition sharpens focus, reduces exposure to the challenging healthcare market, and generates capital that can be returned to shareholders through buybacks,” William Blair analysts said.

The divestiture tracks a trend as some companies in the intensely competitive payments industry target areas with the biggest potential for growth instead of chasing expansion at all costs.

“We recognize that global does not mean everywhere,” Global Payments (NYSE:) CEO Cameron Bready said last month.

Separately, the company reported a near 13% drop in its third-quarter profit due to higher costs.

Founded in 1999, AdvancedMD provides payments and other software services to independent physicians and small-to-medium sized healthcare facilities in the U.S.

Global Payments had acquired AdvancedMD in a $700 million deal in 2018.

“We didn’t consider AdvancedMD a priority asset for Global Payments to sell as we thought stickiness and payment monetization made it worth keeping,” said J.P.Morgan analyst Tien-tsin Huang.

Francisco was an investor in AdvancedMD years ago.

The investment firm has bought healthcare analytics and medical services units from CVS Health (NYSE:), IBM (NYSE:) and Qualcomm (NASDAQ:) over the past few years.

The AdvancedMD deal is expected to close in the fourth quarter. Moelis (NYSE:) & Co is the financial adviser to Francisco, while Bank of America advised Global Payments.