One of Australia’s fastest-growing software developers, small business software specialist MYOB Ltd, is to double the size of its accountancy business with the A$20.8m ($13.6m) purchase of New Zealand software house CA-Systems Ltd.
Craig Winkler, chief executive of MYOB, which had a successful float last June, said the deal should be finalized by November and will be earnings positive next year. The 50 CA-Systems staff will be combined with MYOB’s existing accountancy subsidiary, Teletax, to form a new division for practice management software.
Our goal is to provide a solid, usable solution for small to medium-sized accounting practices, and integration of the various software functions is key, Winkler said, most of the solutions in this space are still DOS-based so there is plenty of room for a 32-bit software solution.
On the domestic and Asian markets the MYOB accountancy products will compete against those of Solution 6, but Winkler says his company’s focus is on smaller and mid-range accountancy practices as opposed to the larger customers targeted by the opposition. The international market is dominated by Sage Software, a UK-based firm with about two million customers worldwide.
