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MYOB's raid on Reckon asset falls through

Reporter
Reporter
31 May 2018 1 minute readShare
Scissors, cut

Reckon’s ambitious plans for expanding its SME offering may have to wait after the proposed $180 million acquisition of its accountant group by MYOB fell over.

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.

MYOB's raid on Reckon asset falls through
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Reporter
Reporter

Adam Zuchetti is the former editor of MyBusiness and a senior freelance media professional, specialising in the fields of business, personal finance and property. In 2020, he also embarked on his own business journey – inspired in part by the entrepreneurs and founders he had met through his journalistic work – with the launch of customised pet gifting and subscription service Paws N’ All.

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