MYOB announces payroll acquisition

Less than one month after listing on the ASX, MYOB has entered into an agreement to acquire an SME payroll solution provider.

MYOB has signed an agreement to acquire New Zealand-based Ace Payroll Plus Limited for NZ$14 ($13.19) million.

Tim Reed, MYOB chief executive, said he is delighted to welcome Ace Payroll to the MYOB team.

“Both companies bring a significant amount of experience to the table,” he said.

“Ace Payroll provides payroll solutions for thousands of New Zealand SMEs. Both Ace and MYOB have been in the New Zealand market for over 20 years, and have established track records of making it easy for employers to pay their staff.

“MYOB has extensive experience in supporting customers in running their payroll. When business owners need advice about payroll, they need it straight away.

"Both MYOB and Ace Payroll have the same approach to making business life easier for our clients by providing phone support. This is yet another reason why uniting our companies makes sense,” Mr Reed said.

MYOB Group CFO Richard Moore said the acquisition is exciting for MYOB, and important for the company’s growth.

“It will help drive our growth strategies, as outlined in our recent prospectus, and solidify our leadership position ,” he said.

“It is a profitable business that will be immediately accretive to both our earnings and EPS, although the timing of the deal will mean the 1H earnings impact will not be material.

“Due to the sizeable overlap with our existing MYOB client base, the increase in our number of paying users will also be small, but it will help bolster our ARPU (Average Revenue per Paying User) in New Zealand and will deepen our relationship with many New Zealand clients, as we will now provide them with both accounting and payroll software,” Mr Moore said.

 

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