ANZ confirms discussions to purchase MYOB

Photo: Kelly Sikkema, via Unsplash.

ANZ Bank (ASX: ANZ) has confirmed today it is negotiating to purchase accounting software group MYOB from US private equity firm Kohlberg Kravis Roberts & Co (KKR).

Responding to market speculation, ANZ clarifies it is yet to reach an agreement with KKR and warns there is no certainty the acquisition will proceed.

MYOB was acquired by KKR in May 2019 for $2.4 billion, but in the three years that followed the New York-based equity giant has reportedly lifted its valuation of the digital accounting service to closer to $4 billion.

Founded in 1991, Melbourne-based MYOB delivers end-to-end business and accounting solutions direct to companies in Australia, Hong Kong, New Zealand, Singapore and Malaysia.

ANZ may be attracted by MYOB’s access to small and medium-sized customers – a segment of the market the bank is focusing on after launching its ANZ GoBiz digital lending platform last year.

If the transaction proceeds, it would be subject to regulatory approvals, including from the Australian Competition and Consumer Commission (ACCC) and the New Zealand Overseas Investments Office.

“ANZ will make an announcement to the market if the negotiations are successfully completed and an agreement is entered into,” the ANZ statement read.

Shares in ANZ (ASX: ANZ) have dropped 1.19 per cent today as of 12.49 pm AEST.

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