Bain Capital has signed a definitive agreement to acquire MYOB Ltd for an undisclosed amount of money, from the consortium led by Archer Capital which acquired the business in February 2009.
The acquisition gives Bain Capital a majority stake in MYOB alongside management who will continue to be shareholders in the company.
Bain Capital Managing Director Walid Sarkis said the Australasian market leader in business management software is a first-class company, with attractive valuation.
“It 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.”
“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.”
In a recent CreditorWatch survey of 168 small businesses, it was revealed that 59 percent of small businesses said MYOB was their financial software product of choice, far outstripping its rivals Quicken, Xero and Sage.
MYOB CEO Tim Reed expressed excitement about Bain Captial’s commitment to the company.
“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.”
“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.”
Archer Capital Partner Andrew Gray said he’s convinced about MYOB’s strong momentum, and about the strength of its future with Bain.