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Australia's Reckon sells accounting practice software arm to Myob for $136.6 million
November 15, 2017 / 10:16 PM / a month ago

Australia's Reckon sells accounting practice software arm to Myob for $136.6 million

(Reuters) - Australian accounting software provider Reckon Ltd (RKN.AX) said on Thursday it would sell its accounting practice management software business to MYOB Group (MYO.AX) for A$180 million ($136.57 million) in an all-cash deal to pay off debt.

Reckon said in a statement it intended to use the proceeds from the deal to repay “the majority of its debt” and pay a special dividend to shareholders.

Myob in a seperate statement said it would acquire all clients, intellectual property, systems and processes, and take in all employees of the Reckon accounting practice software business, including sales, consulting and support teams.

Reckon which has about A$52.6 million in debt as at 2016 intends to use the proceeds from the deal to repay “the majority of its debt” and pay a special dividend to shareholders.

MYOB’s acquisition of Reckon is the company’s second buy this year after it bought online payment service provider Paycorp for A$48 million in February .

MYOB said it would fund the deal by debt and that it expected the purchase to be earnings per share accretive on an underlying basis immediately.

Reporting by Chandini Monnappa in Bengaluru, Editing by William Maclean

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