Sage sued for pulling out too soon
Former MYOB owners upset after Brit biz dumped them
British accounting software firm Sage is being sued for pulling out of a deal to buy Australia's MYOB in August.
The former owner of Mind Your Own Business (MYOB), Archer Capital, is now taking Sage to court after the talks between the two companies fell apart, Sage admitted in an LSE filing today.
Sage was all fired up and ready to take over MYOB for the handsome price of A$1.3bn (£835m), but backed out at the last minute over fears that its shareholders wouldn't approve of the plan in the worsening market conditions.
After the UK firm walked away, MYOB went to American private equity firm Bain Capital, which was reportedly offering A$100m less at A$1.2bn. Archer Capital is now suing Sage for damages of A$130m.
Sage's statement to the stock exchange was short and not very sweet:
The Sage Group notes the claim for damages made by Archer Capital following the termination of discussions between Sage and Archer relating to the potential purchase of MYOB.
Sage strongly rejects the claim, which it understands to be in the region of A$130m, and will defend itself vigorously.