Feeds

MYOB swoops on Solution 6

Friendly takeover

  • alert
  • submit to reddit

High performance access to file storage

MYOB is scooping up Solution 6, a fellow Australian business software firm, in a share swap worth AUS$234m (US$175m). Solution 6 shareholders will end up with 33 per cent of the enlarged group.

At the same time Solution 6 is selling off its US-based enterprise and consulting business to private equity firm Francisco Partners, for AUS$34m (US$25.3m).

The merged business will have pro forma revenues of AUS$180m (US$134m) and will be free of debt. It expects annual post-consolidation cost-savings of AUS$10m-$12m (US$7.5m-$9m) "within three years". This looks like a very leisurely timetable.

MYOB makes tax and payroll software, so Solution 6's accounting, compliance and training divisions will be a nic4 bolt-on. It also takes MYOB into some useful vertical markets. Solution 6 specialises in practice management software for professional service types - lawyers, management consultants and accountants. It claims six of the world's top 20 law firms, including the two biggest, as customers.

The company bought 12 per cent of Solution 6 last year, with the intention of assuming full control of the company. But recent terrible financial news coming out of Solution 6 has accelerated the takeover.

MYOB is to ditch the Solution 6 brand and also the firm's top execs, after a changeover period, according to Australian reports.

It operates directly in Australia, New Zealand, the US, the UK, Hong Kong, Singapore, Malaysia and through disties in Latin America, Southern Africa and the Philippines.

The Solution 6 deal is expected to close within six months and is subject to the usual regulatory conditions. ®

High performance access to file storage

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Oh no, Joe: WinPhone users already griping over 8.1 mega-update
Hang on. Which bit of Developer Preview don't you understand?
Microsoft lobs pre-release Windows Phone 8.1 at devs who dare
App makers can load it before anyone else, but if they do they're stuck with it
Half of Twitter's 'active users' are SILENT STALKERS
Nearly 50% have NEVER tweeted a word
Internet-of-stuff startup dumps NoSQL for ... SQL?
NoSQL taste great at first but lacks proper nutrients, says startup cloud whiz
IRS boss on XP migration: 'Classic fix the airplane while you're flying it attempt'
Plus: Condoleezza Rice at Dropbox 'maybe she can find ... weapons of mass destruction'
Ditch the sync, paddle in the Streem: Upstart offers syncless sharing
Upload, delete and carry on sharing afterwards?
New Facebook phone app allows you to stalk your mates
Nearby Friends feature goes live in a few weeks
Microsoft TIER SMEAR changes app prices whether devs ask or not
Some go up, some go down, Redmond goes silent
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.