Australian payment software
developer, MYOB, in a bid to expand its enterprise resource planning (ERP) offerings has announced the acquisition of Auckland-based Greentree
for $20.5 million (NZD28.5 million). The deal will potentially enable MYOB to build on its strong mid-market client, boosting its enterprise business offerings, and apply its marketing and distribution resources to accelerate growth through the existing Greentree channels.
According to MYOB, the amount,$18.7 million (NZD25.1 million), has been funded through its existing cash reserves. The remaining however, said the company,will be paid in 2017 and 2018 based on “satisfying certain conditions.” It also plans to leverage Greentree’s company expertise in customer relationship management (CRM) and ERP space and integrate its online accounting capabilities to the current Greentree product range.
Tim Reed, CEO, MYOB, said:
We are delighted to announce the acquisition of Greentree, in line with our stated strategy of targeting value-add acquisitions to complement organic growth. Greentree is a quality business and has a very experienced team who collectively bring a wealth of knowledge and experience in the evolving ERP sector.
“We’re thrilled with the growing prominence of MYOB in the ERP space. 2015 saw the expansion of our business with the addition of MYOB Advanced to our market leading EXO Business product line. MYOB will be the first to market with and integrated online ERP and Payroll solution for bigger business. The acquisition of Greentree further reinforces our commitment to bigger businesses in Australia and New Zealand and expands our ERP product suite to establish MYOB as a dominant leader in the mid-market,” Reed added.
Facilitating cloud-based solutions for small and medium enterprises, MYOB was founded in 1991 and since has raised $652 million in its Initial Public Offering. MYOB’s funding round was on May 03, 2015. In today’s date it competes market space with companies like Xero
Led by Peter Dickinson, Greentree claims to provide a unified solution for ERP and provides software to over 850 larger businesses across Australia, New Zealand, UK and US. It distributes via a partner channel into the enterprise market and its product suite has broad, on-premise ERP functionality and licensing is primarily perpetual with annual maintenance, says the company. It also claims to provide Greentree-as-a-Service (GaaS) along with over 13 ERP suites and 84 business modules.
Peter Dickinson CEO, Greentree, said:
This is exciting for our team and a great opportunity to work closely with MYOB to develop and deliver the leading online and on-premise ERP solutions that our clients need to successfully stay ahead in a rapidly changing world. It’s a compelling partnership which allows Greentree to leverage MYOB’s significant scale and resource and tap into new markets.