MYOB acquires Reckon’s accounting business for USD 180 million
Date: 2017-11-16   Author: Satarupa De  Category: #industry

MYOB, the Australia based accounting software conglomerate, has recently penned a deal of USD 180 million with Reckon for acquiring the latter’s accounting group division, in a bid to step up its position in the highly competitive software accountancy business. As claimed by sources, the deal, once officially approved by the New Zealand Commerce Commission and the Australian Competition and Consumer Commission, would bring three patent product lines of Reckon, namely Reckon Docs, Reckon APS, and Reckon Elite under MYOB’s veil. Under the terms and conditions of the agreement, Reckon’s aforementioned product range, as of now, would be rebranded as MYOB, with a long-term plan of transitioning all these products to the MYOB cloud-based platform.

For the record, the book value of Reckon’s accounting practice software business was USD 38 million. The deal seems to be in tandem with MYOB’s business strategy of mainly concentrating on the belt spanning New Zealand and Australia, rather than expanding globally like its immediate rivals, Intuit and Xoro, cite experts. Reportedly, following the acquisition, almost 120 people who are closely linked with Reckon’s three products would be offered jobs at MYOB.

Speaking of the acquisition, one of the eminent spokespersons of MYOB, stated that the deal would help MYOB deepen its relationship with more than 3000 accounting practices across New Zealand and Australia, that had been deploying Reckon’s products so far. It has been further reported that, through this acquisition, MYOB is anticipating an accelerated delivery of its online practice suite, that would offer an online migration path for Reckon’s Accountant business clients to the MYOB platform.

The overpriced financial transaction for the deal has reportedly became a subject of contention. While the accounting software division represents only 50% of Reckon’s entire business in terms of revenue and earnings, the proposed value of USD 180 million is almost equivalent to the company’s entire market capitalization, cite sources.



About Author


Satarupa De

Satarupa De

Satarupa currently works as a associate content writer at AlgosOnline. An electrical engineer by qualification, she worked for two years in the electrical domain before switching her professional genre. Following her childhood passion, she opted for a career in writin...

Read More

More from Satarupa


Post Recommendents

Automotive industry behemoth Nissan forays into home energy space
Author: Saif Ali Bepari

Nissan, the Japanese automotive and transportation market leader, has apparently unveiled its first stand-alone solar, storage and vehicle charging system without any assistance of traditional utilities. As per reliabl...


Chinese electronics giant Sogou unveils Smart Recording Translator
Author: Saif Ali Bepari

Regarded as one of most prominent leader and innovators of China electronics and media industry, Sogou Inc., has recently announced the commencement of the sales of one of its appliances. As per reliable sources, this ...


Royal Dutch Shell plans to make a comeback in polymers industry
Author: Saif Ali Bepari

Touted as the world’s foremost oil and natural gas major, Royal Dutch Shell has apparently decided to re-enter the polymers and advanced materials industry by constructing a gigantic petrochemicals complex in the...