MYOB Group Ltd has announced the acquisition of Hei Matau Holdings 2000 Limited, the ultimate shareholder of the Greentree group of companies, a provider of software and business management systems.
The deal consists of a total consideration of NZ$28.5 million, to be funded from the company’s existing cash reserves. NZ$25.1 million has been paid on completion, with the remainder due in 2017 and 2018 based on the satisfaction of certain conditions.
According to MYOB, three main factors provided the strategic rationale for the acquisition:
- “Extending MYOB’s mid-market leadership into larger-enterprise business offerings and [increasing] the total addressable market (TAM)
- Enabling MYOB to apply its marketing and distribution resources to accelerate growth through the existing Greentree channel
- Allowing MYOB to leverage Greentree’s large-company expertise and provide its leading online capabilities to the current Greentree product range.”
“We are delighted to announce the acquisition of Greentree, in line with our stated strategy of targeting value-add acquisitions to complement organic growth,” noted MYOB CEO Tim Reed.
“Greentree is a quality business and has a very experienced team who collectively bring a wealth of knowledge and experience in the evolving enterprise resource planning (ERP) sector,” Mr Reed added.
Commenting on the new deal, Greentree CEO Peter Dickinson voiced his excitement for the future of ERP products.
“This is exciting for our team and a great opportunity to work closely with MYOB to develop and deliver the leading online and on-premise ERP solutions that our clients need to successfully stay ahead in a rapidly changing world,” he said.