MYOB will acquire Australian payment solutions provider Paycorp for $48 million, the accounting software vendor has announced in conjunction with the release of its full-year 2016 financial results.
Paycorp has more than 6500 clients, including banks and businesses of varying sizes across Australia. The payment platform will bridge a gap between MYOB’s accounting and payment solutions and will open a $700 million accounting software payment market up to MYOB.
MYOB chief executive Tim Reed said the buyout of Paycorp would bring a “significant growth opportunity” for the company in the payment service industry.
“We know from our clients that cash flow is consistently the number one pain point for small business operators and we are delighted that we can bring together a solution that enables our clients to reduce administration time and costs and improve cash flow through the automation of payment services for their businesses,” he said.
“Through this acquisition we will be the first to market with an integrated payment and accounting solution to our clients, which will create a new revenue stream for MYOB while staying true to our vision of helping businesses succeed.”
Paycorp chief executive John Caliguri said: “We are excited to join forces with MYOB, a market leader providing online solutions businesses across Australia and New Zealand. This is the opportunity we’ve been looking for to deliver fully integrated payment solutions to many more clients across Australasia, and thereby help them improve their cashflow.”
The acquisition is expect to complete on 1 April.
The acquisition comes as MYOB announces its 2016 financial year results, which saw revenue hit $370 million for the year ending 31 December 2016, a 13 percent rise from 2015. The same percentage increase was seen in the company's profits, growing to $96.8 million from $85.9 million (net profit after tax and amortisation).
The company said its growth was the result of a 47 percent increase in online subscribers and strong revenue growth in its new product offerings for larger enterprises. MYOB will pay a final dividend of 5.75 cents.