TECHNOLOGY SPECTATOR: Archer's crucial miss

Archer Capital may sell accounting software company MYOB, while Seven Group Holdings' mobile broadband unit is set to deploy its new network.

Technology Spectator

Archer Capital could be looking to sell its MYOB accounting software provider, just two years after it went through quite a struggle to buy it. Meanwhile, in the communications sector, Seven Group Holdings' mobile broadband unit Vividwireless is set to deploy its TD-LTE network by 2012, and AAPT teams up with Oracle to offer a cloud-based service aimed at medium-sized companies. Elsewhere, Telstra sells its majority Adstream stake, Seek and Brambles appoint new chief information officers, Living Social adds to its push into Asia and Groupon buys US Ruby-on-Rails software developer Obtiva.

MYOB, Archer Capital

The private equity owner of accounting software provider MYOB, Archer Capital, is reportedly looking for an exit with plans to boost the business through a bolt-on acquisition reportedly stalling. Archer Capital bought MYOB in 2009 after quite a struggle - the private equity operator lobbed an attractive but non-binding bid in early 2008 and then returned with a more concrete $1.15 a share bid in conjunction with global investment firm HarbourVest Partners, with the proviso that the bid price would rise to $1.25 a share if it managed to achieve full ownership. That bid was summarily dismissed by MYOB's management but it cost them the support of key shareholders. After a hefty tussle and a slight sweetener Archer and HarbourVest took full ownership in January 2009. So after spending close to $400 on MYOB the idea was to beef up the successful business with acquisitions and there was talk a couple of months ago that MYOB may even be back on its way to the ASX.

However, it looks like there is a new twist in the story.