Private Equity News & Analysis

Archer, HarbourVest bid A$448m for Australian software

Archer’s first offer to de-list MYOB in January was rejected as too low at A$1.90 per share; the current offer is for A$1.15 per share.

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Australian private equity firm Archer Capital and HarbourVest, a Boston-based fund of funds, secondary and direct investment firm, have offered to delist MYOB, an Australian software and services company, for approximately A$448 million ($305 million; €238 million).

The firms’ offer of A$1.15 per share is conditional on support from the company’s board and more than 50 percent of shareholders. The offer will be upped to A$1.25 per share if shareholder acceptance reaches 90 percent.

On Wednesday, MYOB plans to pay shareholders a dividend of A$0.13 per share; if shareholders approve the buyout, the dividend will be deducted from the offer price, whether it is A$1.15 per share, or A$1.90 per share, a MYOB spokeswoman told PEO.

In January, Archer made MYOB an offer of A$1.90 per share, which was rejected by the company. MYOB’s shares are currently trading at A$1.15.

MYOB develops and publishes software as well as provides services to SMEs. It has operations in Australia, UK and New Zealand.

In May, Archer led a consortium to acquire Australian toy wholesaler Funtastic for A$132 million. The consortium had already acquired 22 million shares before its bid.

Calls to Archer were not returned at press time.

 

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