MYOB is looking to acquire market leading provider of payment processing solutions, Paycorp for AU$48 million funded by the company’s existing cash reserves.
Founded in the early 1980s, MYOB, the Australian multinational corporation provides tax and accounting services to small and medium-sized enterprises. MYOB offers a suite of subscription-based products and browser-based accounting products, in addition to the cloud-enabled version its flagship product— the AccountRight Live.
Sydney-based Paycorp, is a leading provider of enterprise payment processing solutions to banks, corporates, and industry-specific markets. The company is known for implementing reliable and robust payment solutions that assist enterprise-level clients (banks and businesses) with streamlining organizational activities and optimizing cash flows.
Paycorp provides services such as online payment solutions, integrated POS terminal solutions, accounts receivable automation, secure credit card data storage, and tokenization solutions. Paycorp serves over 6,500 clients, all over Australia.
The deal enables MYOB to capture fees from payments that have been made through accounting software platforms and the market is estimated to be over AU$700 million. Using accounting software systems that are integrated and seamless, MYOB seeks to bridge the gap between accounting and payment solutions.
In a statement to shareholders, MYOB CEO Tim Reed stated that the acquisition will open up opportunities for the company in the payment services market. Reed said,
We know from our clients that cash flow is consistently the number one pain point for small business operators, and we are delighted that we can bring together a solution that enables our clients to reduce administration time and costs and improve cash flow through the automation of payment services for their businesses. Through this acquisition, we will be the first to market with an integrated payment and accounting solution to our clients, which will create a new revenue stream for MYOB while staying true to our vision of helping businesses succeed.
Paycorp CEO, John Caliguri, commented on the acquisition:
We are excited to join forces with MYOB, a market leader in providing online solutions to businesses across A/NZ. This is the opportunity we’ve been looking for to deliver fully integrated payment solutions to many more clients across Australasia, and thereby help it improve its cash flow.
The transaction is expected to be finalized by 1st April 2017.