MYOB’s PayGlobal in crosshairs of offshore suitors
Private equity-backed MYOB has entertained informal offers for its payroll and workforce management software business PayGlobal, Street Talk has learnt.
MYOB was acquired by private equity firm KKR in 2019.
The unsolicited offers, which came from global trade and buyout types, were said to have been pitched between $120 million and $150 million.
PayGlobal is designed to help large businesses with payroll management, time tracking, leave management and HR administration. MYOB acquired the New Zealand-based business from infrastructure investment company Infratil and PayGlobal shareholders in 2014. Infratil’s share, 54 per cent, was valued at about NZ$9.2 million ($8.5 million).
Prospective buyers were told the business made about $30 million revenue and $15 million at the cash earnings line.
However, MYOB decided not to proceed with a sale. The company was publicly listed on the ASX before being acquired by private equity firm KKR for $2.4 billion in 2019. ANZ was in discussions for a takeover of MYOB last year, but stepped away from talks after deciding to pursue the acquisition of Suncorp’s banking division instead.
It’s believed long-time adviser Jarden was on hand to field the offers. Jarden Australia boss Aidan Allen has stuck close to the company for over a decade.
The platform’s latest accounts show a deepening in after-tax losses to $19 million in 2022 from $13.3 million in 2021. MYOB pulled in a whopping $457.8 million in revenue, up 9 per cent, but expenses including staffing, royalties and costs of goods sold rose.
The top job has since turned over to Paul Robson, who succeeded Greg Ellis in late May after nearly four years in the role. Robson was most recently the president of worldwide field operations at
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