MYOB sold for $1.2 billion

Boston's Bain Capital has agreed to buy accounting software success MYOB for a reported $1.2 billion.

Bain pipped British software firm Sage to the vendor after its reportedly higher $1.3 billion bid was derailed on Friday by a falling share price and weak British pound, which would have required shareholder approval to proceed, Bloomberg reported. 

MYOB was owned by a consortium including Australian investment firm Archer Capital and US HarbourVest Partners. They paid about $450 million in 2009.

"MYOB is a first class company with an 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,” Bain Capital managing director Walid Sarkis said.

“The growth potential in this market is strong, with a growing trend of entrepreneurs starting up their own businesses." 

Prior to the sale agreement, MYOB was part way through a $75 million program with Archer Capital to develop and commercialise a portfolio of cloud-based products. 

Archer Capital had whipped MYOB into shape since taking over in February 2009, according to Archer partner Andrew Gray.

“We have worked with management to refocus MYOB's operations and have invested significant capital to expand and improve MYOB's core product offering and services, in the process almost doubling the business' earnings base.”

MYOB chief executive officer Tim Reed was “delighted” with Bain Capital's offer.

“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," he said.