Advantage, Bain, Olympus Shortlisted for Yayoi

Buyout shops Advantage Partners, Bain Capital and Olympus Capital have been shortlisted as bidders for for Japanese software developer Yayoi, Reuters reported Friday. The company, which is owned by MBK Partners, could fetch more than $650 million. Kohlberg Kravis Roberts, which also placed a bid, is not among second-round bidders, Reuters wrote.

(Reuters) – Private equity firms Advantage Partners, Bain Capital and Olympus Capital are among short-listed bidders for Japanese software developer Yayoi, three sources told Reuters, in a deal that could fetch over $650 million for seller MBK Partners.

Kohlberg Kravis Roberts , which also placed a bid, is not among second-round bidders, the sources said, asking not to be identified because the information is not public.

Final bids are due in mid-November, the sources said, and MBK plans to complete the deal by the end of the year. The fund has hired Morgan Stanley to manage the sale.

Officials at Advantage, Bain, Morgan Stanley and Olympus Capital declined comment.

Pan-Asia fund MBK acquired Yayoi in 2007 for 71 billion yen, or about 17 times earnings before interest, tax, depreciation and amortisation (EBITDA), at the height of the leveraged buyout boom.

MBK is unlikely to achieve similar multiples on this deal, with market sources suggesting the asset could fetch 10 times EBITDA. Assets in the sector around the world have sold for about 11 to 12.5 times EBITDA, but the strong yen could still see MBK make a profit.

Yayoi has an EBITDA of around 5 billion yen ($65 million), the sources said.