Forty eight million Australian dollars has been spent as online business management solutions company MYOB buys payment provider Paycorp.
The transaction is expected to be complete on 1 April of this year. The acquisition of Paycorp is a significant market opportunity, in a sector where the Total Addressable Market for fees from payments through accounting software platforms is estimated to be over $700 million.
Tim Reed, MYOB CEO, stated that he is happy with the purchase of the 16-year-old company, and that it is a solution that will enable their clients to reduce admin time and costs within their business.
“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.”
MYOB has existing payment offerings, including MYOB PayDirect Mobile and Online, M-Powered Invoices and M-Powered Payments. This is in addition to payroll solutions PaySuper and NZ Payroll.
John Caliguri, Paycorp CEO, has said that the joining of the companies will offer more online solutions to businesses across New Zealand and Australia.
“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.”
Both companies are joining forces with strong numbers going into the new year. With an existing client base of around 1.2 million small to medium size businesses, MYOB is well positioned to address this attractive market opportunity and create a new revenue with Paycorp’s 6,500 pre-existing clients.
MYOB’s FY16 ended with the company up 13 percent revenue and after tax profit since last year, an average of a $370 million increase in sales.
The company releases a video each year to further look into revenue and profit climbs, watch it below.