US private equity firm Bain Capital has agreed to acquire Australian software maker MYOB for about A$1.2bn ($1.3bn) from buyout firms Archer Capital and HarbourVest Partners, edging out frontrunner Sage Group.
According to Reuters, British software supplier Sage made an offer of about A$1.4bn to acquire MYOB. However, due to a drop in its share price last week forced the firm to abort its bid.
The acquisition gives Bain Capital a majority stake in MYOB alongside management who will continue to be shareholders in the company.
Walid Sarkis, a managing director at Bain Capital, said MYOB has been the leader in the financial software space for SME’s in Australasia for a very long time with a strong proposition focused on customers’ needs. The growth potential in this market is strong, with a growing trend of entrepreneurs starting up their own businesses.
Andrew Gray, partner at Archer Capital said the business has strong momentum and a bright future with Bain Capital.
"MYOB has been a great investment for Archer and our consortium partners. Since acquiring the business in February 2009, we have worked with management to refocus MYOB’s operations and have invested significant capital to expand and improve MYOB’s core product offering and services, in the process almost doubling the business’ earnings base. We are confident that under the new partnership with Bain Capital, the company will continue to be successful," he added.
Archer Capital and HarbourVest bought MYOB, specialises in small and medium enterprises, for about A$450m in 2008.
