MYOB announces new $48m acquisition

MYOB announces new $48m acquisition

MYOB has announced it is acquiring a payment solutions provider, upon releasing its strong full-year results.

Yesterday, MYOB released its financial results for the year ending 31 December 2016, recording revenue growth of 13 per cent, to $370.4 million.

The company’s pro-forma earnings before interest, tax, depreciation and amortisation (EBITDA) was up 12 per cent to $171.5 million, while the net profit after tax and amortisation (NDATA) was up 13 per cent to $96.8 million.

“As a business, we continue to grow from strength to strength and remain focused on delivering to our clients solutions that help them to succeed,” MYOB CEO Tim Reed said.

“We have a clear strategy in place, which is underpinned by our Connected Practice Strategy, and are confident that the trajectory of our business' growth will continue in 2017.”

MYOB also took the opportunity to announce that it has entered into a sale and purchase agreement to acquire Paycorp Payment Solutions Pty Limited (Paycorp) for a consideration of $48 million.

Paycorp is a provider of payment processing solutions to businesses of all sizes across Australasia.

The acquisition will be funded from the company’s existing cash reserves and is expected to be completed on 1 April 2017, subject to satisfying certain conditions.

“We are pleased to announce this deal with Paycorp, which brings significant growth opportunity for us in the payment service industry,” Mr Reed said.

“We know from our clients that cash flow is consistently the number one pain point for small business operators, and we are delighted that we can bring together a solution that enables our clients to reduce administration time and costs, and improve cash flow through the automation of payment services for their businesses.”

MYOB announces new $48m acquisition
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