news MYOB, a provider of online business management solutions, has announced the acquisition of resource planning software group Greentree at a cost of NZ$28.5 million (AU$27.12 million).
The deal – which was brought about by the purchase of Hei Matau Holdings 2000, Greentree Group’s ultimate shareholder – will be funded entirely from MYOB’s existing cash reserves.
According to a statement from MYOB, NZ$25.1 million has been paid on completion of the deal on 1 August, with the remainder due in over the next two years providing “certain conditions” are met.
“We are delighted to announce the acquisition of Greentree, in line with our stated strategy of targeting value-add acquisitions to complement organic growth,” said MYOB CEO Tim Reed. “Greentree is a quality business and has a very experienced team who collectively bring a wealth of knowledge and experience in the evolving ERP sector.”
Auckland-based Greentree provides enterprise resource planning (ERP) software to over 850 large businesses across Australia, New Zealand and the UK.
The firm distributes its products via a partner channel into the enterprise market, made up of companies with approximately 100–1000 employees. The product suite has “broad, on-premise ERP functionality”, according to MYOB, and licensing is primarily perpetual with annual maintenance fees.
MYOB’s Enterprise Solutions division is a growing part of the MYOB business, contributing AU$41 million of revenue in financial year 2015 (13% of group revenues).
According to the company, that figure represented a rise of 4% year on year, and was underpinned by the launch of online solution MYOB Advanced in early 2015, as well as the integration of PayGlobal, acquired in August 2014.
Within the New Zealand and Australian mid-market enterprise segment, the MYOB Enterprise Solutions division delivers ERP and HRM (human resource management) software to over 7,000 clients with approximately 20–500 employees.
The Greentree acquisition is aimed to extend MYOB’s mid-market position into larger enterprise business offerings and grow its market.
Further the move will enable MYOB to apply its marketing and distribution resources to accelerate growth through the existing Greentree channel, as well as leverage Greentree’s large company expertise.
MYPB will also provide its online capabilities to the current Greentree product range.
“This is exciting for our team and a great opportunity to work closely with MYOB to develop and deliver the leading online and on-premise ERP solutions that our clients need to successfully stay ahead in a rapidly changing world,” said Greentree CEO Peter Dickinson.