MYOB snares NZ payroll firm

myobAccounting software group MYOB is buying Wellington company Ace Payroll Plus for NZ$14 million (A$13.15 million).

Ace is 90% owned by Julian Eriksen and Philip Erikson.

MYOB CEO, Tim Reed, said the Ace Payroll Plus business was profitable and would help his company deepen its relationship with NZ customers by allowing it to provide them with both accounting and payroll software.

He said the impact of the acquisition on MYOB’s first half earnings would not be material but the deal was expected to bolster average user revenue.

MYOB financial officer, Richard Moore, said that Ace is a profitable business that will be immediately accretive to earnings and earnings per share, although the timing of the deal means the first-half earnings’ impact will not be material.

In addition, due to the sizeable overlap with the company’s existing MYOB client base, the increase in the number of paying users will be small but will help bolster average revenue per user in New Zealand.

Ace is the third New Zealand company MYOB has bought over the past three years, following Christchurch company PayGlobal for $9.2 million and Auckland based Banklink for $136 million.

Melbourne based MYOB and competitor Xero have purchased payroll software providers to substantiate their offerings.


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