Feeds

MYOB swoops on Solution 6

Friendly takeover

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

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. ®

The Essential Guide to IT Transformation

More from The Register

next story
NO MORE ALL CAPS and other pleasures of Visual Studio 14
Unpicking a packed preview that breaks down ASP.NET
KDE releases ice-cream coloured Plasma 5 just in time for summer
Melty but refreshing - popular rival to Mint's Cinnamon's still a work in progress
Leaked Windows Phone 8.1 Update specs tease details of Nokia's next mobes
New screen sizes, dual SIMs, voice over LTE, and more
Another day, another Firefox: Version 31 is upon us ALREADY
Web devs, Mozilla really wants you to like this one
Put down that Oracle database patch: It could cost $23,000 per CPU
On-by-default INMEMORY tech a boon for developers ... as long as they can afford it
Mozilla keeps its Beard, hopes anti-gay marriage troubles are now over
Plenty on new CEO's todo list – starting with Firefox's slipping grasp
Apple: We'll unleash OS X Yosemite beta on the MASSES on 24 July
Starting today, regular fanbois will be guinea pigs, it tells Reg
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.