MYOB annouces Paycorp acquisition
Last month, along with its financial results for the year ending 31 December 2016, which reported revenue growth of 13 per cent, to $370.4 million, MYOB also announced the acquisition of Paycorp Payment Solutions Pty Limited for $48 million.
The company has also reported an increase in profit from 2015’s $42.3 million loss to $54 million profit. For 2017, MYOB forecasts double digit revenue growth; earnings before interest, tax, depreciation and amortisation are expected to margin in between 45 and 50 per cent. The company has also announced continued investment in research and development.
“We have e clear strategy in place, which is underpinned by our Connected Practice Strategy, and we are confident that the trajectory of our business’ growth will continue in 2017,” said MYOB CEO Tim Reed.
“We are pleased to announce this deal with Paycorp, which brings significant growth opportunity for us in the payment service industry,” Mr Reed continued. Paycorp is a provider of payment processing solutions to businesses of all sizes across Australia and, according to Mr Reed, its acquisition will allow MYOB to be the first to offer an integrated payment and accounting solution.
“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 business,” said Mr Reed’s statement to the ASX.
The acquisition process is expected to be completed by April 2017, given it satisfies certain conditions. It will be funded from MYOB’s existing cash reserves.