Sage is front runner in race for MYOB in a takeover that could cost it $1.4bn

Steve Dinneen
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SAGE is understood to be the front runner in the bid to acquire Australian business software group MYOB.

It has placed a final bid for the firm, alongside Bain Capital and Kohlberg Kravis Roberts (KKR).

The winning bid is expected to be as high as $1.4bn (£850m), based on the price of similar deals, according to analysts. Earlier predictions that the bid could be around $1bn suggest a profit multiple of around 10 times. However, Kohlberg Kravis Roberts’s investment in Norway’s Visma in September 2010 attracted a multiple of 12.5 times and HG Capital’s TeamSystem deal was struck at 11.3 times.

It is understood Deutsche Bank, which has a long-standing relationship with the accountancy firm, is acting as corporate broker for Sage. Private equity firms Archer Capital and HarbourVest Partners, which bought MYOB for about £287m in 2008, have hired UBS to advise on the sale.