Reckon chief executive Clive Rabie is stepping down as CEO to become managing director less than a month after a deal fell apart to sell the company’s accounting practice management software business to MYOB.
Rabie will step aside from the day-to-day operations of the business after 12 years as chief executive to take on the MD role, where he will focus on group strategy, growth and mentoring the managing team during the transition period, according to Reckon.
Replacing Rabie is Sam Allert from 1 July, who has been managing director of Reckon’s accounts group since 2013. Allert joined the company in 1999 as one of the first employees of the APS business. Reckon said the succession plan was in place prior to the MYOB acquisition falling through
The acquisition by MYOB was revealed in November last year and, if successful, would have seen Reckon sell the software business along with 120 staff to MYOB for $180 million, while retaining its business and legal practice management divisions.
However, the ACCC expressed concerns that MYOB would likely be the only practice software supplier that was suitable for medium-to-large accounting firms if the acquisition went ahead.
The corporate watchdog wasn’t prepared to make its final decision until 21 June, nearly a month after the acquisition had to be approved by to proceed.
MYOB terminated the deal after failing to reach an agreement to extend talks with Reckon when the ACCC delayed its ruling on whether to approve the acquisition.
As well as the change in leadership, Reckon announced a handful of new initiatives which the company said would accelerate its independent growth in light of the acquisition failing.
The company said it would make a series of acquisitions that would form a core component of its long-term growth strategy. The first of those acquisition is cloud-based practice management software provider Better Clinics, which specialises in products for health, medical and fitness customers.
“Not only does the acquisition of Better Clinics open Reckon up to the market of health and fitness professionals, there is also significant potential here for us to update and refine the source code for other industries,” Allert said.
“We also plan to put our flagship cloud accounting software Reckon One behind the app to enhance the offering over time. The integration will deliver immediate synergies, with Better Clinic customers having access to accounting functionalities on Reckon One including payroll.”
In addition to Allert’s new role, Reckon’s chairman Ian Ferrier will retire after 14 years to be replaced by Greg Wilkinson, one of the co-founders of the company in 1987. Reckon’s other co-founder Phillip Hayman will also join the board as a non-executive director.
“We have an exciting growth strategy across our entire business, and what we have retained with the accountants' group is a prestigious client base, a fantastic product set, distribution channel, revenue stream and the best team in the market,” Allert said.
“We remain confident that we will continue to deliver value for our customers, partners, shareholders and employees as part of our independent growth strategy.”