Bain sells stake in Australian software provider for $273m

The firm has pared down its shareholding in MYOB from 56 percent to 40 percent.

Global investment firm Bain Capital has partially exited its stake in Australian accounting software company MYOB through a block trade, according to a filing on the Australian Securities Exchange on Thursday.

Bain sold 100 million ordinary shares priced at A$3.55 per share equivalent to A$355 million ($273 million; €259 million), compared to MYOB’s last share price of A$3.69.

The firm still continues to own 237,151,360 ordinary shares in MYOB, representing a 39.1 percent stake.

The sale came hours after MYOB reported its annual results – the company’s revenues increased by 13 percent or A$370.4 million compared with the previous year. Meanwhile, the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) were A$171.5 million, up 12 percent.

MYOB provides business management and accounting software to over a million small and medium enterprises and 10,000 accounting practices across the Asia-Pacific region

Bain bought a majority stake in MYOB in 2011 for A$1.2 billion from Sydney-based private equity group Archer Capital, Squadron Asia Pacific (acquired by Aberdeen Asset Management in May 2015) and HarbourVest Partners, fending off rivals KKR, Hellman & Friedman and UK software company Sage.

The firm then floated software company in May 2015 but retained a 56 percent stake in the business.

It is unclear from which fund the investment was made however Private Equity International has learned that Bain's first Asia-focused fund, 2007-vintage $1 billion Bain Capital Asia is returning over 2x investors' capital.

Bain, with approximately $75 billion in assets under management, is currently in the process of deploying capital for its latest Asia-focused vehicle, Bain Capital Asia Fund III, which closed on $3 billion in December 2015.