MYOB, the leader in the financial software space for SME’s in Australasia, has been sold to Boston’s Bain Capital for a reported $1.2 billion. Bain defeated British software firm Sage for Australia’s biggest software vendor despite the firm’s higher $1.3 billion bid. Sage’s higher bid was derailed on Friday and falling share price and weak British pound have been blamed for the incident.

A first class company with an attractive valuation, MYOB has been a leading the software space for quite some time with a strong proposition focused on customers’ needs. The company has a strong potential for growth what with budding entrepreneurs starting their own businesses.

Before the sale, MYOB belonged to a consortium which included Australian investment firm Archer Capital and US HarbourVest Partners who had paid about $450 million in 2009. The software vendor was also on its way to develop and commercialize a portfolio of cloud-based products through a $75 million program with Archer Capital.

According to Archer partner Andrew Gray, Archer Capital was responsible for whipping MYOB into shape after it took over the company in February, 2009. “We have worked with management to refocus MYOB’s operations and have invested significant capital to expand and improve MYOB’s core product offering and services, in the process almost doubling the business’ earnings base.”

“We are entering the era of the connected business and are focused on the growth opportunities in front of us, particularly given the strong period of innovation MYOB is enjoying as it moves its business online,” said MYOB chief executive officer Tim Reed who was “delighted” with Bain Capital’s offer.

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