MYOB buys NZ payroll provider Information Management Services for up to $9.7M
By Paul McBeth
Sept. 30 (BusinessDesk) - MYOB, the Australian payment solutions software developer, has bought Hastings-based payroll provider Information Management Services for as much as $9.7 million, its fourth New Zealand acquisition in recent years.
The Melbourne-based company paid $8.1 million on completion of the acquisition, with the rest due in 2016 and 2017 provided certain conditions are met, MYOB said in a statement. The deal adds more than 10,000 small- and medium-sized businesses to the Australian company's suite of products, and is expected to be immediately accretive to MYOB's earnings.
"Payroll is an attractive market segment in New Zealand, with significant online growth potential," MYOB chief financial officer Richard Moore said. "This acquisition will help deepen our relationship with NZ clients as we continue to roll out MYOB's next generation of cloud accounting and payroll solutions."
In May, MYOB bought Lower Hutt-based Ace Payroll Plus for $14 million, having acquired BankLink for $136 million in 2012, and payroll and HR management software firm PayGlobal for $13.7 million last year.
IMS was owned by interests associated with founder Kevin Atkinson and chief executive Douglas Jopling.
MYOB shares last traded at A$3.35 on the ASX, and have declined 11 percent this year.