Following MYOB's recent return to the Australian Securities Exchange (ASX), the Australian accounting software company today acquired the New Zealand based Ace Payroll.
MYOB picked up Ace Payroll for NZ$14 million, with a further NZ$7 million payable in 2016, providing "certain conditions" are met.
"Ace Payroll is a profitable business that will be immediately accretive to MYOB's earnings," the accounting software company said in a statement.
MYOB stated they currently provide accounting and payroll solutions to approximately 1.2 million Australian and New Zealand small businesses, and many of Ace Payroll's clients currently use its solutions.
The company outlined that their strategic three-tier rationale for the acquisition was to strengthen their position as a leading provider of payroll software in New Zealand, to increase average revenue per paying user in New Zealand, and to boost earnings.
Whilst under private ownership, the company spent AU$42 million in research and development during the financial year ending 2014.