MYOB pays $28.5m for NZ-based Greentree enterprise business
MYOB, the Australian payment software developer, has continued its run of acquisitions, buying New Zealand enterprise resource planning (ERP) software writer Greentree for $28.5 million.
Sydney-based MYOB paid $25.1 million up-front and will pay the remainder in 2017 and 2018 on certain conditions being met, it said in a statement. The deal is being funded from MYOB's existing cash reserves.
"We are delighted to announce the acquisition of Greentree, in line with our stated strategy of targeting value-add acquisitions to complement organic growth," chief executive Tim Reed said. "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."
MYOB has been building out its business buying payroll and HR software developers to expand its services beyond the traditional accounting base. The company's enterprise division contributed about 13 percent of MYOB's annual revenue.
Greentree's biggest shareholders, through Hei Matau Holdings 2000 Ltd, were directors Michael Bowman and Stephen Donovan, with a 28 percent stake. That's followed by three separate 20 percent stakes held by Stephen and Sandra Donovan and Julie Ullness; product director Stephen Sims and Debbie Sims; and chief executive Peter Dickinson and Janet Dickinson; and Neil Murray. An 8.8 percent share was held by Michelle Hill, channels director Graham Hill, and Kenneth Lotu-Iiga, and 3 percent by John Lamborn and Justin and Julie Watt.