Thursday, 28 May 2015 13:32

MYOB to pay $14m for NZ payroll solutions provider Featured

By

Accounting software provider MYOB has moved to strengthen its position in the New Zealand payroll solutions market with the acquisition of Kiwi company Ace Payroll Plus.

MYOB is outlaying NZ$14 million for Ace Payroll, describing the deal as a “strategic move” to drive growth strategies and solidify its position in the New Zealand market, the home territory of its major accounting software competitor in the ANZ market, Xero.

MYOB also announced today that it is embarking on the development of the next generation of online payroll solutions for New Zealand businesses, saying that it is experiencing strong uptake of its online solutions, with 67% of new customers choosing a cloud accounting solution in Q4 2014.

The signing of an agreement to buy Ace Payroll comes within a month of MYOB’s listing on the ASX.

The deal is expected to be completed by the end of this month, and MYOB CEO Tim Reed says both companies bring a significant amount of experience to the table “providing very popular payroll solutions in New Zealand.”

“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.”

Reed says Ace Payroll 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”.

But, Reed says market overlap between the two companies won’t have a significant impact on the number of paying users.

“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.”

Commenting on the deal, Ace Payroll founder Phil Eriksen said that uniting with MYOB was the best possible outcome for the company’s customers.

On the development of the next generation of online payroll solutions for New Zealand businesses, Reed says that with the new solutions is s MYOB’s goal is to remove complexity and create even simpler solutions “to help business owners build better relationships with their staff.”

“Our research and development spend – over $100 million in the past three years – is entirely focused on the Australian and New Zealand markets. Not having to split our resources across multiple regions means that MYOB can provide world-leading SME payroll and accounting solutions specifically for small businesses in Australia and New Zealand.”

“Our solutions suit the needs of businesses both small and larger, from start-ups through to mid-tier companies employing up to 1,000 people.”

DIGITAL MARKETING HAS NO SOCIAL DISTANCING OR TRAVEL RESTRICTIONS

As part of our Lead Machine Methodology we will help you get more leads, more customers and more business. Let us help you develop your digital marketing campaign

Digital Marketing is ideal in these tough times and it can replace face to face marketing with person to person marketing via the phone conference calls and webinars

Significant opportunity pipelines can be developed and continually topped up with the help of Digital Marketing so that deals can be made and deals can be closed

- Newsletter adverts in dynamic GIF slideshow formats

- News site adverts from small to large sizes also as dynamic GIF slideshow formats

- Guest Editorial - get your message out there and put your CEO in the spotlight

- Promotional News and Content - displayed on the homepage and all pages

- Leverage our proven event promotion methodology - The Lead Machine gets you leads

Contact Andrew our digital campaign designer on 0412 390 000 or via email andrew.matler@itwire.com

CONTACT US!

LAYER 1 ENCRIPTION A KEY TO CYBER-SECURITY SOLUTION

Security requirements such as confidentiality, integrity and authentication have become mandatory in most industries.

Data encryption methods previously used only by military and intelligence services have become common practice in all data transfer networks across all platforms, in all industries where information is sensitive and vital (financial and government institutions, critical infrastructure, data centres, and service providers).

Get the full details on Layer-1 encryption solutions straight from PacketLight’s optical networks experts.

This white paper titled, “When 1% of the Light Equals 100% of the Information” is a must read for anyone within the fiber optics, cybersecurity or related industry sectors.

To access click Download here.

DOWNLOAD!

Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

VENDOR NEWS & EVENTS

REVIEWS

Recent Comments