MYOB TO BUY A SLICE OF RECKON FOR $180M

Cloud accounting provider Reckon is selling a 120-person division to rival MYOB for $180 million as it looks to – in the words of Group CEO Clive Rabie – “narrow focus on the small business accounting software market”.

Subject to regulatory approval by the ACCC and the NZCC, MYOB will acquire the assets of Reckon’s Accountants Practice Management division, which include three businesses (Reckon APS, Reckon Elite and Reckon Docs) that provide accounting, tax compliance and related software to more than 4000 small and large accounting practices in Australia and New Zealand. All clients, IP, systems and employees associated with the division are included in the purchase.

According to MYOB CEO Tim Reed, the acquisition will see MYOB strengthen its focus on ‘the critical adviser audience’ and, in this way, deepen the company’s relationship with accounting practices.

“At MYOB, we believe the future of the accounting industry is an exciting one – we refer to it as our Connected Practice vision,” he said. “In this future, we believe advisers will become even more important in the lives of their SME clients than they are today.

“We are excited to welcome the team from Reckon’s Accountant Group. Collectively they bring fantastic expertise and insight in the adviser segment and we’re delighted that they will help us bring to life this next exciting growth phase of our business.”

With the sale of the Accountants Practice Management Division, Reckon have stated they will continue to focus on their Business division, which provides accounting software and solutions for small to large businesses, while pursuing opportunities in the legal market through their Legal Practice Management Division. Read more

James Harkness - Dynamic Business - 16 Nov 2017