Geordie accountancy specialist Sage is in the race to buy Australian firm MYOB (from Mind Your Own Business) which offers similar services down under.

The deal could close for as much as A$1bn (£637m) according to sources quoted by Reuters.

MYOB has been in business for over 20 years and claims a million Aussie and Kiwi customers.

It started life with one accountancy product but now offers various business, payroll, sales and marketing products.

But the British accountancy specialist could face rival bids from private equity firms Bain Capital and Kohlberg, Kravis Roberts and Co.

Sage has made several smaller buys in recent years.

The official statement from Sage said: "The Sage Group plc ("Sage") notes the press speculation regarding a potential acquisition of MYOB Pty Ltd ("MYOB"). Sage can confirm that it is currently considering a potential acquisition of MYOB. However there is no certainty that it will proceed. The company will provide further information, if and when appropriate."

Two private equity companies paid A$450m (£287m) in 2008 for MYOB, a nice little return. ®