Feeds

MYOB swoops on Solution 6

Friendly takeover

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

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. ®

Security for virtualized datacentres

More from The Register

next story
Netscape Navigator - the browser that started it all - turns 20
It was 20 years ago today, Marc Andreeesen taught the band to play
UNIX greybeards threaten Debian fork over systemd plan
'Veteran Unix Admins' fear desktop emphasis is betraying open source
Sign off my IT project or I’ll PHONE your MUM
Honestly, it’s a piece of piss
Return of the Jedi – Apache reclaims web server crown
.london, .hamburg and .公司 - that's .com in Chinese - storm the web server charts
Chrome 38's new HTML tag support makes fatties FIT and SKINNIER
First browser to protect networks' bandwith using official spec
Admins! Never mind POODLE, there're NEW OpenSSL bugs to splat
Four new patches for open-source crypto libraries
Torvalds CONFESSES: 'I'm pretty good at alienating devs'
Admits to 'a metric ****load' of mistakes during work with Linux collaborators
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.