Carlyle will struggle to bag elusive Aussie prize

Carlyle Group CEO Kewsong Lee speaks during a Reuters Newsmaker event in New York City, U.S., September 22, 2021. REUTERS/Stephen Yang

MELBOURNE, Dec 22 (Reuters Breakingviews) - Carlyle’s (CG.O) 14-month on-again, off-again pursuit of one of Australia’s most sought-after M&A targets may finally be at an end. In November the private-equity firm suddenly returned with an offer for Link Administration (LNK.AX), the shareholder services company it had first approached a year earlier. Since then, the target has seen off all suitors, including KKR (KKR.N) and software developer SS&C Technologies (SSNC.O). Now Canada’s Dye & Durham(DND.TO), which had earlier contemplated joining the takeover throng, has struck an agreed deal valuing Link’s equity at A$2.8 billion ($2 billion).

Dye’s offer is only around 2% higher than Carlyle’s – mostly courtesy of the share-price rise at PEXA (PXA.AX), the mortgage-settlement company 43%-owned by Link. But Dye boss Matthew Proud reckons he can squeeze out C$125 million ($97 million) in annual costs. Taxed and capitalised, those are worth roughly a third of the value of the entire deal – and some two-thirds, after stripping out the PEXA stake. It’s hard to see Carlyle beating that. Bowing out for the final time looks like the best move. (By Antony Currie)

Follow @Breakingviews on Twitter

Register now for FREE unlimited access to

Capital Calls - More concise insights on global finance:

Softbank’s Apollo landing does little to reassure read more

Nikola’s SEC collision damage read more

Schroders’ green pivot has golden price read more

Biogen scales back Alzheimer's drug hopes read more

Europe’s new monetary bad cop has right bark read more

Register now for FREE unlimited access to
Editing by Robyn Mak and Thomas Shum

Our Standards: The Thomson Reuters Trust Principles.

Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.