Archer sues Sage for 'dropping' MYOB

Former MYOB majority shareholder Archer Capital has filed suit against British software company Sage for allegedly backing out of a proposed buyout of MYOB.

Sage issued a statement on Monday that it "strongly rejects the claim" by Archer which it believed was in the region of $130 million.

Sage said it would "defend itself vigorously". 

The value of the claim is thought to be the difference between what Sage had offered Archer and the roughly $1.2 billion that MYOB fetched from private equity firm Bain Capital in August.

Sage revealed it had been in discussions with Archer to acquire MYOB just days before the Australian accounting software vendor was sold to Bain. 

An analyst in Britain said Archer was either "trying it on" or talks with Sage were "much further advanced", the Financial Times reported.