MYOB has made its second major Australian acquisition of 2017 with the purchase of Sydney-based Reckon’s accounting practice management software business for $180 million in an all-cash deal.
Reckon will hand over its APS, Elite and Docs businesses to MYOB as part of the deal, while retaining its business and legal practice management divisions. MYOB acquired Aussie payment platform Paycorp for $48 million in February.
“We are pleased to have signed a definitive agreement with MYOB to sell our accountants practice management division,” Reckon chief executive Clive Rabie said.
“The move marks a significant step forward for Reckon, as we look to narrow our focus on the small business accounting software market, further fuelling momentum in an area that’s rife with untapped opportunities especially as more enterprises look to the cloud.”
In addition to the division’s clients, intellectual property, systems and processes, MYOB will also add more than 120 employees from Reckon’s accountants practice management division.
The sale is expected to be completed in the second quarter of the 2018 financial year. Reckon will use the proceeds to pay off debts.
“The Reckon board, management and staff have built a strong business around advisers and we’re excited to welcome their team to MYOB,” MYOB chief executive Tim Reed said.
“We’re looking forward to the next exciting phase of our business, bringing to life our vision of the connected practice and delivering connectivity, efficiencies and growth opportunities to advisers and SME businesses across Australia and New Zealand.”
In March this year, Reckon spun out its document management division and was listed on the London Stock Exchange’s alternative investment market (AIM), as part of its long-term shareholder strategy.