Sage considers MYOB buy

Sage considers MYOB buy

Summary: Sage Group has confirmed that it is looking into buying business accounting software specialist MYOB, which was snapped up by private equity and investment firms in 2009.

SHARE:

Sage Group has confirmed that it is looking into buying business accounting software specialist MYOB, which was snapped up by private equity and investment firms in 2009.

The Australian Financial Review reported earlier this month that owner Archer Capital was looking to offload the business, and had asked for bids.

The publication has since named a line of suitors consisting of other private equity firms, such as Kohlberg Kravis & Roberts and Bain Capital.

Last night, however, it said that pundits were tipping Sage as the front runner for the deal.

Now Sage has confirmed in a statement to the London Stock Exchange that it is "currently considering a potential acquisition of MYOB", adding, however, that there was "no certainty that it will proceed".

The AFR quoted estimates that placed MYOB's value at between $800 million and $1 billion. Archer Capital and American HarbourVest originally offered $443 million plus options for the company.

Since that time, software as a service (SaaS) has risen in prominence, with companies innovating into the cloud area. Xero is one cloud competitor that has been growing its Australian business.

MYOB released an SaaS product called LiveAccounts last year, but delayed its hybrid AccountRight version.

Topics: Cloud, Enterprise Software, Legal

Suzanne Tindal

About Suzanne Tindal

Suzanne Tindal cut her teeth at ZDNet.com.au as the site's telecommunications reporter, a role that saw her break some of the biggest stories associated with the National Broadband Network process. She then turned her attention to all matters in government and corporate ICT circles. Now she's taking on the whole gamut as news editor for the site.

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

0 comments
Log in or register to start the discussion