21 Aug 2011
(Hong Kong / Sydney, 21 August 2011) Bain Capital announced today that it has signed a definitive agreement to acquire MYOB Ltd, Australia's largest independent software vendor, from a consortium led by Archer Capital that also included international investment firm HarbourVest Partners. Financial terms of the transaction are confidential and have not been disclosed. The acquisition gives Bain Capital a majority stake in MYOB alongside management who will continue to be shareholders in the company.
MYOB is the Australasian market leader in business management software, having helped make business life easier for over 1,000,000 SME's across Australia and New Zealand. MYOB's clients benefit from the company's innovative solutions that enable businesses and accounting practices to streamline workflows, save time, gain deeper insight into their businesses and foster seamless connections between businesses and their advisors.
Walid Sarkis, a Managing Director at Bain Capital, said: "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. The growth potential in this market is strong, with a growing trend of entrepreneurs starting up their own businesses."
Craig Boyce, a Managing Director at Bain Capital, added: "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."
Tim Reed, the CEO of MYOB, commented: "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."
He continued: "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."
Andrew Gray, Partner, Archer Capital said the business has strong momentum and a bright future with Bain Capital. He added: "MYOB has been a great investment for Archer and our consortium partners. Since acquiring the business in February 2009, 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. We are confident that under the new partnership with Bain Capital, the company will continue to be successful."
Bain Capital has been active in Asia since 2005. Its first Asian fund raised US$1 billion in 2007 and currently has a portfolio of 12 leading companies in China, Japan and India. Bain Capital has been involved in the Australian market for 15 years with investments in Frucor, Startronics and Vertex. It is an experienced, global software investor, having successfully partnered over six years with TeamSystem, a similar business to MYOB in Italy.
Archer Capital was advised by UBS and Bain Capital by Morgan Stanley.
Archer Capital (www.archercapital.com.au) is one of Australia's leading private equity investment houses, with over $2 billion in funds under management or advice and the longest track record of any leveraged buyout manager in Australia.Since 1996, Archer Capital's Partners and executives have closed over 30 acquisitions involving total aggregate funding in excess of $5 billion across investments that have included Acendia Retail (Rebel Sports), Emeco, iNova Pharmaceuticals, Repco, Tasman Building Products and V8 Supercars.
Bain Capital, LLC (www.baincapital.com) is a global private investment firm that manages several pools of capital, including private equity, venture capital, public equity, credit products and absolute return, with approximately $65 billion in assets under management. Since its inception in 1984, the firm has made private equity investments and add-on acquisitions in more than 300 companies worldwide. Bain Capital has a distinctly people-intensive, value-added approach to investing, with a strong emphasis on supporting management teams to drive strategic and operating improvements. Bain Capital Asia, the firm's Asian private equity affiliate, has been investing with the same philosophy since 2007. Bain Capital private equity investments in Asia have included such leading businesses as ASIMCO, Bellsystem24, Denon&Marantz, Domino's Japan, Feixiang, GA Pack, GOME, Hero Investments and Lilliput. Bain Capital has offices in Boston, Hong Kong, Shanghai, Tokyo, Mumbai, London, Munich, Chicago, and New York.
MYOB is a leading provider of business management solutions that have helped more than a million businesses in Australia and New Zealand. MYOB serves businesses of all kinds and sizes, delivering software and services that simplify accounting, payroll, client management, websites, and much more. With a network of more than 20,000 accountants and other professional partners, MYOB provides the tools and support that help make business life easier. For more information visit the MYOB website at www.myob.com