Accounting software vendors Sage Group are being sued for A$130 million for backing out of a deal to purchase rival MYOB in August.
Sage entered into negotiations with owners Archer Capital and HarbourVest Partners to purchase the business for a reported A$1.35 billion.
However, the deal fell through when a late drop in Sage’s share price caused its bid to climb above 25% of its market capitalisation, and thus demand a more rigorous approval process.
The sellers still managed to offload MYOB, to another equity firm, Bain Capital, but for a lower purchase price, reported to be between A$1.2 billion and A$1.3 billion.
Now, MYOB’s former shareholders are suing Sage for damages. Sage has promised to dispute the case, saying in a statement, 'Sage strongly rejects the claim, which it understands to be in the region of A$130 million, and will defend itself vigorously'.