MYOB acquires New Zealand startup Greentree for NZ$28.5 million to expand market reach
Accounting software company MYOB has acquired the holding company of New Zealand startup Greentree, developer of enterprise resource planning (ERP) software, for NZ$28.5 million (AUD$27 million). Hei Matua Holdings 2000 has been acquired to help MYOB expand its offering to reach into the larger enterprise market.
Based in Auckland, Greentree was founded out of accounting software company CBA in 1984, and now reports that it delivers its software solutions to more than 850 large businesses across Australia, New Zealand, and the UK.
MYOB, meanwhile, has its own enterprise solutions division, with a solid presence in the New Zealand and Australia mid-market enterprise sector, delivering both ERP and HRM (human resource management) software to over 7,000 clients.
Enterprise solutions is a steadily growing part of the MYOB business, contributing AU$41 million in revenue, approximately 13 percent of all MYOB group revenues.
CEO of MYOB Tim Reed said the acquisition is in line with the company’s strategy of targeting value-add acquisitions to complement organic growth, with the alignment between the companies to be used to not only extend MYOB’s market reach but also allow it to apply its marketing and distribution resources to Greentree’s existing channels.
“Greentree is a quality business and has a very experienced team who collectively bring a wealth of knowledge and experience in the evolving ERP sector,” Reed said.
“MYOB will be the first to market with and integrated online ERP and Payroll solution for bigger business. The acquisition of Greentree further reinforces our commitment to bigger businesses in Australia and New Zealand and expands our ERP product suite to establish MYOB as a dominant leader in the mid-market.”
Greentree CEO Peter Dickinson said the team welcomed the opportunity to work closely with MYOB.
“It’s a compelling partnership which allows Greentree to leverage MYOB’s significant scale and resource and tap into new markets.”
MYOB has paid NZ$25.1 million in cash, with the remainder due over the next two years if particular performance conditions are met.
The company has been looking to the New Zealand market – home to competitor Xero – for some time, acquiring Lower Hutt payroll company Ace Payroll in May 2015 for NZ$14 million, Christchurch HRM software company PayGlobal in 2014, and Auckland’s BankLink for NZ$136 million in 2013.
Reed told New Zealand’s Stuff last year, “There’s tonnes of innovative software that’s taking place here, tonnes of entrepreneurs doing awesome and amazing things right now in New Zealand. We’re very bullish on New Zealand.
The acquisition comes after last week’s launch of PayDirect Online, a new online payment processing system and card reader looking to help small businesses get paid on the go.
Image: Tim Reed. Source: Supplied.