MYOB goes under the hammer to Bain for 'about $1.2 billion'

Stan Beer
Monday, 22 August 2011 07:51

IT Industry - Deals

After a $1.2 billion acquisition deal with UK-based Sage Group fell through late last week, Australia's largest business software maker MYOB has been acquired by US private equity firm Bain Capital for an undisclosed sum.

 

MYOB, which is a major player in the Australian small business accounting space, was previously owned by a consortium including Archer Capital and HarbourVest Partners.

Until late last week, it appeared that the Sage acquisition for $1.2 billion was a done deal. However, reports say that the European share market shellacking dented Sage's chances, leaving the door open for Bain to step in.

Although the amount Bain paid for MYOB is undisclosed, reports based on anonymous sources are circulating putting the figure at somewhere between $1.2 billion and $1.3 billion.

Bain was previously headed by the leading US Republican Presidential candidate Mitt Romney.

The MYOB acquisition may also signal a move by cashed up US and European investors to buy up more relatively cheap assets in Australia, one of the few markets globally which still has strong local demand for business technology driven by the booming mining sector.