Software group MYOB will buy the Australian and New Zealand assets of Reckon’s Accountant Group for $180 million.

November 16, 2017

Business software group MYOB will buy rival Reckon’s accounting business for $180 million.

MYOB chief executive Tim Reed says he expects the purchase of Reckon’s Accountant Group assets – which include taxation and financial reporting software – to contribute to underlying earnings immediately.

The purchase will not only open doors for the rollout of MYOB’s online accounting practice software to Reckon’s clients, but also broadens its small- and medium-sized business customer base.

“Through this acquisition we will be able to accelerate the delivery of our online practice suite to bring advisers online faster and provide an online migration path for Reckon’s Accountant Group clients to the MYOB platform,” Mr Reed said.

“It will deepen our relationship with more than 3,000 accounting practices – the most trusted advisers to SMEs and people who we know play an integral role in the business lives of SMEs”.

MYOB plans to reinvest the first two years’ earnings from the Reckon assets in sales and marketing.

Reckon chief executive officer Clive Rabie says the sale was in the best interests of both shareholders and Accountant Group clients. 

“We believe that combining two businesses, that are strategically and culturally aligned, under the MYOB group presents a compelling opportunity for our clients and investors,” said Mr Rabie.

“The combined business provides efficiencies and resources that will enable long-term benefits for our clients and employees.”

The sale requires approval from the Australian Competition and Consumer Commission (ACCC) and the New Zealand Commerce Commission (NZCC), and will be funded by a committed debt facility.

MYOB expects the transaction to be completed by the second quarter of 2018.

Reckon shares were up 31 cents, or 25.62 per cent, to $1.52 at 1326 AEST while MYOB shares were two cents, or 0.55 per cent, higher at $3.65 following the announcement.