MYOB Finance NZ Limited, a subsidiary of MYOB Holdings Pty Limited, has signed a conditional agreement to purchase PayGlobal Limited.
Given the organisation's position as one of the market leaders in the provision of business, HR and payroll solutions to larger businesses, uniting the companies is a key strategic move by MYOB.
According to a statement released to the media, the acquisition will "leverage complementary strengths in Australia and New Zealand markets, and it is consistent with MYOB’s focus on making business life easier."
“I’m really proud to announce the acquisition of PayGlobal by MYOB," says Tim Reed, CEO, MYOB.
"The union leverages the strengths of both organisations to broaden the range of leading HR and payroll solutions MYOB provides to the mid-to-large-size market in Australia and New Zealand.
"It also creates new opportunities for PayGlobal clients.
“In introducing complementary solutions to our popular EXO offering for larger businesses – a market we continue to focus heavily on – MYOB is also demonstrating our commitment to invest exclusively in the local market.
"Over the past three years we have invested over NZ$100 million in research and development to provide comprehensive solutions that make business life easier.”
PayGlobal offers HR and payroll solutions that are accessed by over 500,000 employees from leading companies in New Zealand and Australia.
Established in 1991, PayGlobal’s head office is in Christchurch and it has a similar footprint to MYOB with offices throughout Australia and New Zealand.
“PayGlobal looks forward to accelerated market penetration of its HR and Payroll solutions with MYOB," says Greg Lancaster, Chairman, PayGlobal.
"PayGlobal already has both a high quality client base and a high calibre team across Australia and New Zealand and is a natural fit with MYOB’s direction, which will offer new and existing clients - as well as the team - exciting opportunities.”
Reed adds that PayGlobal’s suite is a natural extension to MYOB’s existing EXO Business and EXO Employer Services suite, and will form part of its larger business offering.
MYOB will fund the acquisition from existing cash reserves. The acquisition is scheduled to be completed on 31 August 2014.