Australia's accounting software war is hotting up with global investment banks appointed for the MYOB IPO

Photo by Denis Doyle/Getty

It could be a sign that Xero is gaining some serious traction in the local market or it might simply be that now is a good time to float. But news that Bank of America Merrill Lynch, Citigroup, Goldman Sachs and UBS have been appointed as joint lead managers on the float of MYOB suggests the cloud accounting software wars are hotting up.

The AFR reports this morning that the float is expected to happen in 2015 and attract a valuation for private equity owners Bain Capital of between $2.5 billion and $3 billion.

The IPO was flagged by MYOB CEO Tim Reed on the ASX back in September when reporting the refinancing of MYOB debt.

“We have greater flexibility in debt arrangements, we have lowered the cost of our debt and have built in the flexibility for a possible market listing in the future,” he said at the time.

Reporting its first half results MYOB said it had had its “best-performing half ever” with an increase in revenue of 21% to $140 million and EBITDA up 29% to $70 million.

It also said it was 4 times bigger in the Australian SME market than its nearest rival.

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