MYOB has reassured customers it will be business as usual while it assesses a $2.6 billion buyout proposal from American private equity firm KKR & Co.
The potential deal was announced to the market on Monday morning, alongside news KKR has purchased a 17.6% stake in the business from Bain Capital for $327 million.
MYOB’s share price shot up more than 18% in early Monday trading to $3.52, while KKR valued the business at $3.70 per share in its unsolicited, non-binding, cash acquisition proposal.
There will be no changes to any products or the business strategy of MYOB while the potential acquisition is being considered by the board, a company spokesperson said.
The proposal values MYOB at $2.2 billion, plus an additional $400 million in debt KKR would take on if the deal goes ahead.
KKR, an international investment firm with billions on its books, has yet to complete due diligence work and has said it requires the unanimous recommendation of MYOB’s board of directors to continue with its bid.
The New York-based company already has a 19.9% stake in the business after its purchase from Bain, which now holds about 6.1% of MYOB.
“The MYOB Board has commenced an assessment of the proposal and will keep the market informed,” the company said in a statement on Monday.
“The Board is committed to acting in the best interests of all shareholders.”
Founded in the 1990s, MYOB (Mind Your Own Business) is one of the most prominent accounting software platforms in use by small businesses in Australia.
The company delivered $218.5 million in revenue for the first half of financial year 18 and said in August it was on track to reach one million online subscribers by 2020.