​MYOB buys New Zealand payroll firm for NZ$9.7m

MYOB has acquired Information Management Services as part of its growth strategy to strengthen its online payroll solutions.

MYOB has acquired New Zealand-based payroll firm Information Management Services (IMS) for NZ$9.7 million.

This is the third New Zealand payroll solutions firm MYOB has acquired. Last August, the company acquired PayGlobal, and in May the company announced it had bought Ace Payroll as part of a NZ$14 million deal.

MYOB SME Solutions General Manager James Scollay said the acquisition will drive the company's growth strategies in developing new online payroll solutions.

"New Zealand has a complex payroll compliance regime, with employers grappling with a range of considerations such as annual leave requirements, KiwiSaver and parental support obligations. In addition, a large number of New Zealand employers pay their staff weekly, which has a big impact on the time spent by employers ensuring each pay is accurate," he said.

"MYOB's goal is to re-imagine what payroll solutions can deliver for SME operators in terms of productivity, compliance and helping to strengthen their trusted relationship with employees."

In August, the cloud accounting software reported that over one quarter of its 528,000 paying customers were now cloud users. As end of June 2015, cloud subscriptions totalled 142,000, an increase of 65 percent from the same time last year.

In addition, during its first set of half year results since returning to the ASX in May, MYOB posted pro forma earnings before interest, taxes, depreciation, and amoritisation (EBITDA) of AU$72 million, an increase of 14 percent from the first half of last year, while statutory EBITDA fell from AU$55 million last year, to AU$47 million.