MYOB announced that it has terminated the contract with Reckon on the basis that the deal could not be finalised by today, as per the original agreement penned in November last year.
The Australian Competition and Consumer Commission had expressed concerns over the transaction, and together with the New Zealand Commerce Commission, extended their review periods to 21 June, three weeks past the contract’s expiry date.
In a statement to the ASX on Thursday 31 May, MYOB said the two parties could not agree to mutually acceptable terms to extend the contract.
Reckon managing director Australia and New Zealand, Sam Allert, is disappointed by the developments, but told My Business’ sister title Accountants Daily that he sees a silver lining for a significant portion of Reckon’s client base.
“A lot of our clients left MYOB to come to us, and didn’t want to go back. That was the feedback we’ve had, and the feedback the regulators have had from the market,” Mr Allert said.
Reckon had said that the $180 million from the sale of its Accountants Practice Management division would be used to grow its SME accounting software offering.