The New York City-headquartered global investment company, KKR & Co, has placed a buyout offer for the accountant software firm based in Melbourne, MYOB.
KKR has offered to acquire MYOB for AU$1.75bn (US$1.24bn), following its purchase of almost a fifth of the firm.
The company offered AU$3.70 (US$2.61) per share for the remaining 80.1% in MYOB, valuing the Australian firm at AU$2.2bn (US$1.55bn).
KKR bought a 17.6% stake in the cloud software group from Bain Capital for AU$327.4mn (US231.08mn), bringing its share total to 19.9%.
“The board received this proposal over the weekend and we wanted to provide an update to the market immediately,” Tim Reed, the CEO of MYOB, informed ABC News.
“Our first commitment is, as always, to deliver exceptional shareholder value and there to consider any reasonable proposal.”
“Early indications are that in KKR we have gained a supportive and interested shareholder who is confident in the company’s strategy and people, as Bain were and we expect will continue to be with their remaining shareholding.”
“While our board and advisors work through the next steps it is business as usual. We will continue to deliver on our strategy and to provide exceptional products and support for our clients and partners.”
KKR has placed the offer in a bid to expand its tech business portfolio, having made its largest deal in May this year when buying BMC Software for US$8.3bn.
The US-based firm reportedly intends to spend a record of US$1trn of unused investor money, Reuters claims.
“With 19.9 per cent of the register, KKR effectively own a blocking stake in the company. We think this could be enough of a deterrent for a potential interloper,” analysts at JPMorgan remarked.
Following the news, MYOB’s shares rose by 19% trading at AU$3.55 (US$2.51).