KKR completes acquisition of Aussie accounting software firm MYOB

MYOB CEO Tim Reed. Photo: MYOB's Facebook page

US-based private equity major KKR has completed the acquisition of Australian accounting software provider MYOB Group.

The investment has been made through KKR’s $9.3 billion flagship Asian Fund III.

The deal came through after much twists that spanned for over six months ending only when MYOB’s second-biggest shareholder Manikay Partners finally agreed, with reservations, to KKR’s $1.14 billion (A$1.6 billion) takeover bid.

The takeover negotiations kicked off in October last year when KKR had launched an offer to buy the shares it did not already own in MYOB for A$3.70 per share. Later it sweetened the offer price raising it to A$3.77 per share, at one point valuing the company at $1.61 billion. Before that, KKR had already bought MYOB shares from Bain Capital Abacus Holdings for AUD 327.4 million and had built its hold in MYOB to close to 20 per cent.

“The past year has been an eventful one for MYOB in which we accelerated our investment in the MYOB Platform and fast-tracked its delivery to our customers. This roll-out helped us to achieve even greater online subscriber growth and propelled us to a leading position in Australia and New Zealand’s online accounting market,” said Tim Reed, CEO of MYOB.

MYOB offers over 50 business management solutions including accounting, payroll, payments, retail point of sale, CRM and professional tax solutions, among others. It largely caters to medium and small businesses in Australia and New Zealand.

“We are excited to partner with and support MYOB as it accelerates the company’s growth plans in Australia and New Zealand while also exploring the significant opportunities it has to offer its customers new products and solutions, said David Lang, Member at KKR.

MYOB shares were trading at A$3.40 at the time of writing this article.

Also Read:

Australian software firm MYOB recommends KKR’s lower buyout offer

Australian software firm MYOB’s key shareholder caves in to KKR offer

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.