Published on the 16/05/2013 | Written by Vendor
The accounting system vendor plugs the gap in its business with BankLink, putting it at a stronger competitive advantage…
MYOB Finance NZ Limited has today signed an agreement to purchase award-winning BankLink for NZ$136 million. MYOB and BankLink are both recognised market leaders in the provision of business management solutions to SMEs and accountants. MYOB’s SME solutions provide businesses with an accounting system, while BankLink integrates the business’ accounts with its bank and its accountant.
MYOB said the two companies “offer highly complementary solutions”, and said the 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. The combination of MYOB’s cloud computing offering and BankLink’s existing relationships with more than 4500 accountancy practices will establish a platform upon which MYOB can compete with Xero, which offers similar business-accountant-bank integration to BankLink.
According to MYOB the combination of MYOB’s cloud accounting solution AccountRight Live, its entry level online accounting solution LiveAccounts and BankLink’s market leading accountants’ solution BankLink Practice will create “the most comprehensive set of accounting solutions in the market today”. Sales of MYOB’s cloud accounting solutions now make up one-third of all new product registrations (almost three times higher than last year) and now all solutions will be powered by BankLink bank feeds, known for being secure, reliable and accurate, putting MYOB at a distinct competitive advantage in delivering its cloud strategy.
MYOB chief executive officer, Tim Reed said, “Key to the success of MYOB’s online strategy is its partnership with accountants in practice. 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.”
He added, “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.”
Craig Boyce, managing director of Bain Capital majority owner of the MYOB Group said, “The acquisition of BankLink is highly strategic; the competitive advantage provided by their integrated bank feeds is key to MYOB’s cloud offerings. We look forward to further supporting and investing in MYOB’s growth and product development in the coming years.”
BankLink‘s General Manager Operations, Richard Reese, says “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. We look forward to future success as part of MYOB.”
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.
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