The sale came after software firm Sage’s higher bid of $1.3 billion fell through last week due to a low share price and increasingly weak British Pound, according to Bloomberg.
MYOB is Australia’s biggest software vendor, previously owned by a consortium that paid ‘about $450 million’ in 2009, itnews reports.
Bain Capital and MYOB are confident about the transaction, with the view to expand MYOB’s online portfolio, moving forward.
“We are delighted with Bain Capital’s commitment to MYOB. We are entering the era of the connected business and are focused on the growth opportunities in front of us, particularly given the strong period of innovation MYOB is enjoying as it moves its business online.” Tim Reed, the CEO of MYOB said.
“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,” Reed added.
Walid Sarkis, the managing director of Bain Capital says that MYOB’s value as a “first class” company made it a “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 of MYOB and its move toward online business is already in progress with a $75 million program headed by Archer Capital to develop a portfolio of cloud-based products.
The project will continue after the sale is made official, with Bain Capital supportive of the work that has been done so far.
“We are excited by the prospect of investing alongside the management team of MYOB, to continue developing the terrific business they have built. Together with Archer Capital they have invested to enable the company to further meet the needs of customers, particularly through leading cloud-based capabilities,” said Craig Boyce, a Managing Director at Bain Capital.
Bain Capital has had a presence in the Australian market for 15 years with numerous investments in companies like Frucor, Startronics and Vertex.