Reckon buys UK software house

Australian accounting software firm Reckon yesterday announced its intention to buy UK document management and portal software provider Linden House software.

Reckon said that it had been searching for a document management and portal product to fit into its business for a long time. These products will be rolled into Reckon's APS suite, for large accounting practices; Elite suite, for other accounting practices; NQBB suite, for legal practices; and small-and-medium-size business suite.

The Linden House software currently has its strongest market in accounting practices, financial services providers and insurance companies, although it is used in a variety of industries.

"[Linden House]'s products will round out many of our software solutions. It is a solution that is getting great traction in the UK market in many industries and, consequently, provides a good future opportunity for Reckon across all of our divisions," Reckon Group CEO Clive Rabie said.

The price of the acquisition will depend on how Linden House performs over the next three years, with Reckon aiming for an acquisition multiple of five times Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA).

Reckon will come up with an initial payment of AU$9 million and expects the total payment to be around AU$22 million.

The Linden House management team will remain in place. Alison Jackson, the co-founder of the company, said that the Reckon deal would help it sell its products to the Australian New Zealand and US markets.