Feeds

MYOB swoops on Solution 6

Friendly takeover

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

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. ®

Remote control for virtualized desktops

More from The Register

next story
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
You stupid BRICK! PCs running Avast AV can't handle Windows fixes
Fix issued, fingers pointed, forums in flames
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Microsoft: Your Linux Docker containers are now OURS to command
New tool lets admins wrangle Linux apps from Windows
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Seattle children’s accelerates Citrix login times by 500% with cross-tier insight
Seattle Children’s is a leading research hospital with a large and growing Citrix XenDesktop deployment. See how they used ExtraHop to accelerate launch times.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?