MYOB Acquires Greentree for NZ$28.5 Million
Sydney, Aug 1, 2016 AEST (ABN Newswire) - Leading provider of online business management solutions, MYOB Group Limited (MYOB or the company) (
ASX:MYO) today announced the acquisition of Hei Matau Holdings 2000 Limited, the ultimate shareholder of the Greentree group of companies (Greentree) for 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 satisfying certain conditions.
Headquartered in Auckland, Greentree delivers leading enterprise resource planning (ERP) software to over 850 larger businesses across Australia, New Zealand and the UK. With over 25 years' experience, Greentree distributes via a partner channel into the enterprise market, comprising of companies with approximately 100 - 1000 employees. Its product suite has broad, on-premise ERP functionality and licensing is primarily perpetual with annual maintenance.
The MYOB Enterprise Solutions division is a leader in the New Zealand and Australian mid-market enterprise segment, delivering ERP and HRM (human resource management) software to over 7,000 clients with approximately 20 - 500 employees. MYOB Enterprise Solutions is a growing part of the MYOB business, contributing A$41 million of revenue in FY15 (13 percent of MYOB group revenues), up 4% year on year, underpinned by the launch of online solution MYOB Advanced in early 2015, and the successful integration of PayGlobal, acquired in August 2014.
The strategic rationale for the Greentree acquisition includes:
- Extending MYOB's mid-market leadership into larger enterprise business offerings and increase 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
MYOB CEO Tim Reed said:
"We are delighted to announce the acquisition of Greentree, in line with our stated strategy of targeting value-add acquisitions to complement organic growth. Greentree is a quality business and has a very experienced team who collectively bring a wealth of knowledge and experience in the evolving ERP sector."
Greentree CEO Peter Dickinson said:
"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."
The acquisition of Greentree completed today.
About Myob Group Ltd
MYOB Group Ltd (ASX:MYO) is a leading provider of online business management solutions. It makes business life easier for approximately 1.2 million businesses and accountants across Australia and New Zealand by simplifying accounting, payroll, tax, practice management, CRM, job costing, inventory and more. MYOB operates across three core segments – Clients and Partners (business solutions to SMEs and Advisers); Enterprise Solutions (larger businesses) and Payment Solutions. It provides ongoing support through client service channels including a network of over 40,000 accountants, bookkeepers and other consultants. It is committed to ongoing innovation, particularly through its Connected Practice Strategy and through the development of the MYOB Platform. For more information, follow @MYOB on Twitter or visit https://investors.myob.com.au/Investors
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