Advantage, Bain, Olympus in second-round bidding for Yayoi

Sources told Reuters that Yayoi may sell for more than $650 million - a contrast to reports earlier this month suggesting MBK hoped to sell the asset for JPY75 billion ($977 million). Media at the time reported that KKR was also in the running for Yayoi, but the firm does not appear to be in the second round of bidding.

The final round of bidding is expected to take place mid-November.

South Korea-based MBK purchased the asset for JPY71 billion in 2007 at the height of the leveraged buyout boom. If MBK were to achieve its earlier-reported JPY75 billion sale, it would still make a strong return on its investment given the yen's current strength. However, the revised $650 million price tag dampens these prospects

A Nikkei report from 2007 noted that MBK paid a high price for Yayoi, which at the time had less than 100 staff and EBITDA of around JPY4 billion. If that figure was accurate, MBK's price translates to 18x earnings. Yayoi's EBITDA for the past year reached JPY5 billion.

Bain's participation in the auction marks its second attempt at purchasing a leading software player in two months. In August, it acquired Australian accounting software developer MYOB from Archer Capital and HarbourVest, beating KKR and UK software maker SAGE.

Advantage, meanwhile, is looking to take a stake in Yayoi for the second time. It invested an undisclosed amount in the company in 2003 and divested its shares to Livedoor as part of its buyout of the firm in 2004. Livedoor sold Yayoi to MBK in 2007.

Yayoi was formerly called Intuit and operated as the Japanese subsidiary of US-based Intuit Inc., producing packaged software tailored to small- and medium-sized enterprises (SMEs).

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• Topics
• North Asia
• Technology
• Buyouts
• Japan
• TMT
• buyout
• Aditya Birla Capital Advisors
• Bain Capital Asia
• Olympus Capital Holdings Asia
• KKR
• MBK Partners