Sydney-based, ASX-listed financial software company, MYOB Group (ASX: MYO), has paid $A28.5m ($25.1m upfront and the remainder due in 2017 and 2018 subject to conditions) for Hei Matau Holdings 2000, owner of enterprise resource planning software company, Greentree.
According to MYOB, Greentree provides ERP software to over 850 businesses across New Zealand, Australia, the UK and US. With “Greentree distributes via a partner channel into the enterprise market, comprising companies with approximately 100 – 1,000 employees,” MYOB said. “Its product suite has broad, on-premise ERP functionality and licensing is primarily perpetual with annual maintenance.”
MYOB claims to be a leader in the ANZ enterprise software market, with more than 7,000 clients for its ERP and human resource management software products. However its customers are smaller businesses than those served by Greentree, generally having between 20 - 500 employees.
MYOB says ERP software represent a growing part of its business, contributing $A41m ($43.3m) of revenue in FY15, 13 percent of total and up four percent year on year. “[This growth has been] underpinned by the successful integration of PayGlobal, acquired in August 2014, and the launch of online solution MYOB Advanced in early 2015,” MYOB said. “Since its inception 18 months ago, MYOB Advanced has exceeded market expectation across Australia and New Zealand and is now positioned as the fastest growing cloud ERP solution for the mid-market.”
It says the Greentree acquisition will enable it to extend its mid-market penetration into larger enterprise businesses and enable it to accelerate growth through the existing Greentree channel.
MYOB CEO Tim Reed claimed that MYOB would be first to market with and integrated online ERP and payroll solution for bigger business.