Story image

MYOB to acquire NZ firm for $136m

14 May 13

One of MYOB's subsidiaries, MYOB Finance NZ Limited, has signed an agreement to purchase the unlisted New Zealand business, BankLink, from Media Transfer Services Limited.

Announced to the Australian Securities Exchange today, the deal stands at $136 million.

The Australian accounting software company says acquisition is a key strategic move that will leverage the strengths of both organisations, and position the new entity to lead the next wave of industry growth – cloud accounting.

“Key to the success of MYOB’s online strategy is its partnership with accountants in practice," says Tim Reed, CEO, MYOB.

"The coming together of MYOB and BankLink allows accountants to recommend the most appropriate accounting solution for each and every unique client.

"In addition, we can now further enhance this partnership by having more team members on the ground focused on accountants in practice and supporting their success.

"Accounting is going through a period of rapid innovation.

"Cloud solutions are replacing desktop applications; bank feeds are a key component of a cloud solution, as they are used as source data for the accounts.

"The benefits of automatic bank feeds are huge; they significantly reduce the time it takes to do the books.

"If you are running a small business, it is essential to have accurate financials.

"BankLink has proprietary methods of supplying accurate, reliable and secure bank feeds that are more accurate and secure than others.”

Both companies deal in the provision of business management solutions to SMEs and accountants across the ANZ region, believing the combined entity will have the most comprehensive set of accounting solutions in the market today.

“We are delighted that BankLink will become part of an iconic and reputable business that has a strongly aligned and clear vision for the future," says Richard Reese, general manager of Operations, BankLink.

"We look forward to future success as part of MYOB."

A highly successful Kiwi organisation, the BankLink Service is used by nearly 5,000 accounting practices, and more than 320,000 small businesses throughout New Zealand and Australia.

Each month, it securely delivers in excess of 13 million customer transactions from over 100 banks, credit unions, brokers and fund managers.


MYOB will acquire the BankLink business through the funding of a NZ$75m senior bank debt, with the balance funded by an equity funding from MYOB's shareholder.

Performance against senior bank debt and MYOB Notes covenants improves as a result of the acquisition due to the reinvestment of NZ$61m of equity funding by MYOB's shareholder and the contribution of the earnings of the BankLink business to MYOB's earnings.

“The acquisition of BankLink is highly strategic; the competitive advantage provided by their integrated bank feeds is key to MYOB’s cloud offerings," says Craig Boyce, managing director, Bain Capital.

"We look forward to further supporting and investing in MYOB’s growth and product development in the coming years.”

MYOB says BankLink’s European business does not form part of the acquisition.

The growing United Kingdom based operation, soon to be renamed “Bankstream”, will be retained by BankLink director Derek Jones.

It will be supported by a dedicated development and operational team based in Auckland.

The sale and purchase agreement is subject to a number of conditions including regulatory and third party consents. The acquisition is expected to be completed in June 2013.

Dell EMC embeds security in latest servers
Dell EMC's 14th generation of PowerEdge servers has comprehensive management tools to provide security across hardware and firmware.
Hands-on review: The Logitech R500 laser presentation remote
With a clever ergonomic design, you’ll never have to glance at the device, unless you deliberately look to use the built-in laser pointer to emphasise your presentation.
Noel Leeming slapped with $200,000 fine for misrepresentation
“This prosecution related to multiple consumers in multiple locations. It was not isolated or ‘one off’ conduct.”
Review: Should you buy the Fitbit Charge 3?
If you are new the to the world of wearables you might be wondering if Fitbit’s new offering is a good first step. Maybe I can help with that.
The disaster recovery-as-a-service market is on the rise
As time progresses and advanced technologies are implemented, the demand for disaster recovery-as-a-service is also expected to increase.
Dell dominates enterprise storage market, HPE declines
The enterprise storage system market continues to be a goldmine for most vendors with demand relentlessly rising year-on-year.
Lenovo DCG moves Knight into A/NZ general manager role
Knight will now relocate to Sydney where he will be tasked with managing and growing the company’s data centre business across A/NZ.
Avnet to boost AI/IoT solutions with acquisition
The acquisition of Softweb Solutions adds software and artificial intelligence to Avnet’s ecosystem and bolsters its IoT capabilities.