The NZ$136m ($112.5m) acquisition will be funded by NZ$75m ($62m) senior bank debt, with the remaining will be covered by an equity funding from MYOB’s shareholder.
The combined entity will have a comprehensive set of accounting services, including MYOB’s AccountRight Live cloud accounting technology, LiveAccounts entry level online accounting service and BankLink’s Practice, which will be powered by BankLink bank feeds.
MYOB delivers technologies and services to SME businesses that empower them to run their own accounting system, while BankLink enables accountants to perform accounting on behalf of the business.
Currently, sales of MYOB’s cloud accounting solutions make up one-third of all new product registrations, which represents an increase by three times compared to last year’s sales.
Used by nearly 5,000 accounting practices, and more than 320,000 small businesses throughout New Zealand and Australia, the BankLink Service delivers over 13 million customer transactions securely from more than 100 banks, credit unions, brokers and fund managers.
