Sage Group, the UK’s largest software company, has lost out to US private equity firm Bain Capital it its bid to acquire Australian rival MYOB, Reuters reported over the weekend.
On Thursday last week, it was reported that Sage had entered ‘exclusive’ discussions with MYOB (which stands for ‘Mind Your Own Business) after outbidding all other contenders. Sage was said to have offered roughly £850 million for the Melbourne-headquartered company, which is already owned by a consortium of private equity firms.
However, on Sunday it emerged that a $1.5 billion bid for the company from Bain Capital had been accepted.
The private equity firms selling MYOB, Archer Capital and HarbourVest Partners, stand to make roughly £500 million on the sale after buying the company for £287 million in 2008.
Meanwhile, British software development tools vendor Micro Focus has pulled out of its takeover talks. Bain Capital, which was founded by US presidential hopeful Mitt Romney, was among the potential acquirers for Micro Focus.
In a statement, Micro Focus said that it had only been open to and discussing offers up until August 19th. "Based on feedback now received…the Board has terminated discussions and, as a result, Micro Focus is no longer in an offer period."
