Global private equity giant KKR has launched a A$1.75bn ($1.24bn) takeover offer for MYOB Group, accounting software provider.
The company said in a statement that’s its board was studying the non-binding offer, which was conditional on KKR obtaining financing for the deal and getting a unanimous recommendation from the target’s directors.
After buying almost a fifth of the Australian accounting business, the U.S. private equity firm is looking to grows its portfolio of tech businesses.
Bain Capital has sold MYOB shares representing 17.6% of the company to KKR in a deal worth A$327m. It comes seven years after Bain Capital acquired MYOB in 2011 for $1.2bn from Archer Capital.
In total KKR currently holds shares representing a 19.9% stake in MYOB, while Bain has retained shares equivalent to 6.1%.
KKR is now offering A$3.15 per share. “The MYOB Board has commenced an assessment of the Proposal and will keep the market informed in accordance with its continuous disclosure requirements,” a statement released by MYOB said.
“The Board is committed to acting in the best interests of all shareholders. MYOB shareholders do not need to take any action in relation to the Proposal at this stage. There is no certainty that the Proposal will result in a transaction.”
If successful, the company would become one of KKR’s biggest acquisitions in Australia and add to its technology-driven businesses in the Asia-Pacific region. KKR last year raised $9.3bn– a regional record – in its third Asia-focused buyout fund.
MYOB is a provider of business management solutions, which claims to give over a million businesses the freedom to focus on the work they really love.
Its software and services simplify many parts of a business including accounting, payroll, retail POS, CRM, websites, tax and more. With a network of more than 40,000 accountants and other professional partners, MYOB aims to provide the tools and support that help make business life easier.
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