Xero, the cloud based accountancy software provider, has taken a public shot at competitors MYOB and Reckon after the two announced a deal.
MYOB yesterday announced the acquisition of Reckon’s accounting group division in Australia and New Zealand for $180 million.
“The news was no real surprise and had been rumoured for some time,” says Trent Innes, Managing Director of Xero Australia.
He says the enterprise resource planning and customer relationship management markets are notorious for buying competitors to gain customers.
“The software industry is littered with customers trapped on legacy products receiving little to no investment or innovation,” says Innes.
MYOB’s purchase brings 3,000 accounting practice customers into its business, a step up in the highly competitive accountancy software business.
“So today is crunch time for Reckon customers,” says Innes.
“Do you wait for a forced migration to a new solution or do you move to an open practice platform like Xero HQ that provides an integrated set of the world’s best practice tools all in one place?”
Xero shares are down 2.2% to $29.21 today. MYOB is up 1.3% to $3.71 and Reckon 2.6% to $1.56 after rising 25% yesterday.