MYOB, the cloud accountancy software group, is buying New Zealand-based Greentree in a NZ$28.5 million ($27 million) deal to expand its position in the mid-market tier.
A short time ago, MYOB shares were down 0.27% to $3.75.
MYOB sees the deal, to be funded from existing cash reserves, as building its mid-market business into larger companies.
Greentree delivers enterprise resource planning software to 850 larger businesses across Australia, New Zealand and the UK. It distributes via a partner channel to companies with 100 to 1000 employees.
At MYOB, its enterprise solutions division has 7,000 clients with 20 to 500 employees.
The company plans to leverage Greentree’s large company expertise and provide its online capabilities to the current Greentree product range.
“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,” says MYOB chief executive Tim Reed.
In the year to December, MYOB posted 22% growth in net profit to $86 million on a 10% rise in revenue to $328 million.