MYOB has entered in to a sale and purchase agreement to acquire Paycorp Payment Solutions for $48 million.
The acquisition will be funded from the company’s existing cash reserves and is expected to be complete by 1 April 2017.
Tim Reed, CEO of MYOB, says they are pleased to announce the acquisition as it brings significant growth opportunity for the company in the payment service industry.
“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,” he explains. “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.”
The acquisition will also strengthen margins for existing MYOB connected services by allowing MYOB to have direct commercial, contractual and operational relationships with the acquirers and payment processors.
John Caliguri, CEO of Paycorp, adds that they are also excited about the partnership, providing online solutions to businesses across Australia and New Zealand.
“This is the opportunity we’ve been looking for to deliver fully integrated payment solutions to many more clients across Australasia, and thereby help them improve their cashflow.”