Bain Capital has announced that it has signed a definitive agreement to acquire Australian accounting software vendor MYOB.
MYOB was bought by a consortium led by Archer Capital at the end of 2008, with the sale being completed in 2009. Now Bain has made an agreement to acquire a majority stake in the company, with some shares to remain held by management. The companies did not disclose the financial terms of the deal.
"MYOB is a first-class company with an attractive valuation. It has been the leader in the financial software space for [small- to medium-sized enterprises] 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," Walid Sarkis, a managing director at Bain Capital, said in a statement.
Bain Capital wrested the company from Sage, which had also been interested in MYOB, with reports saying that it had bid $1.4 billion for the software vendor. However, market turmoil reportedly scuttled its bid, paving the way for Bain, which had been named as one of MYOB's original suitors, to push its case.
"Bain Capital is an ideal partner to take us forward, given its proven successes in leading similar companies to higher ground in other parts of the world. Its internationally recognised portfolio group of local management consultants and ex-operations professionals with proven track record can no doubt provide the expertise to take us through our next phase of growth," MYOB CEO Tim Reed said.
Bain Capital has been involved in the Australian market for 15 years with investments in Frucor, Startronics and Vertex. It had partnered with TeamSystem, a similar business to MYOB in Italy, MYOB said.
Archer Capital partner Andrew Gray said that MYOB had a "bright" future with Bain Capital. He said that the business had been a good investment for Archer, having almost doubled MYOB's earning base with the investment of capital to improve the company's product.