MYOB has further strengthened its position in the New Zealand payroll and accounting solutions market by signing an agreement to acquire Wellington-based Ace Payroll Plus Limited for a purchase price of NZ$14 million, the company announced today.
“I am delighted that MYOB is uniting with Ace Payroll. Together we are the most experienced and the most popular provider of payroll solutions in New Zealand,” says SME Solutions General Manager James Scollay.
“Ace Payroll provides payroll solutions for thousands of New Zealand SMEs. Just like MYOB, it has been in this market for over 20 years, and has established a proven track record of making it easy for Kiwi employers to pay their staff.”
Paying staff on time and ensuring they meet compliance obligations is critical for small businesses. It’s therefore essential that SME employers not only have the best tools, but also the right support, says Mr Scollay.
“MYOB has extensive experience in payroll and supporting customers in running their payroll. We understand that when customers need advice about payroll, they need it straight away. Both MYOB and Ace Payroll have the same approach to making business life easier for our clients and provide phone support for our small business customers. This is yet another reason why uniting our companies makes sense.”
Ace Payroll founder Phil Eriksen says, “We’re very proud of the business we have built over the past 20 years and we believe that uniting with MYOB is the best possible outcome for our customers.”
Investment in innovative cloud payroll platform
MYOB also announced today that it is embarking on the development of the next generation of online payroll solutions. Mr Scollay says the company will leverage the experience it has gained in this market to extend the capability of its online payroll tools. MYOB is experiencing strong uptake of its online solutions, with 67% of new customers choosing cloud solutions in Q4 2014.
“With our new online payroll solutions, our goal is to remove complexity and create even simpler solutions to help SME owners build better relationships with their staff,” he says.
Commitment to NZ
Ace Payroll is the third New Zealand company to be acquired by MYOB in two years, and follows the successful integration of BankLink (acquired in 2013) and PayGlobal (acquired in 2014). Mr Scollay says this demonstrates the company’s admiration and appreciation for Kiwi innovation and technology.
“In addition to investing in great local technology businesses, MYOB employs over 335 staff in New Zealand. Of those, a quarter are employed in product development. We also have call centres in Auckland and Christchurch so that our Kiwi customers are supported by New Zealand-based customer service representatives.”
“MYOB’s research and development spend – over $100 million in the past three years – is entirely focused on the New Zealand and Australian markets,” he says.
“Not having to split our resources across multiple regions means that MYOB can provide world-leading SME payroll and accounting solutions specifically for small businesses in ANZ.”
MYOB’s investment in Ace Payroll further supports the company’s strategy of providing the right tools for every business size.
“From start-ups with one employee, through to mid-tier companies employing up to 1000 people – MYOB has it covered for payroll and accounting solutions,” Mr Scollay says.
MYOB Group Limited is the parent company of the purchasing MYOB entity, MYOB Finance NZ Limited. The transaction is scheduled to be completed around 31 May 2015.
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About MYOB Group
MYOB is a leading provider of business management, accounting, payroll and tax software in Australia and New Zealand, supplying its software, services and support to small and medium sized enterprises (“SMEs”), larger businesses and public accountants. MYOB commenced operations over 20 years ago and now supports 1.2 million small, medium and larger businesses, and more than 40,000 accountants across Australia and New Zealand. Over the past three years, MYOB has invested over NZ$100 million in R & D, employs more than 1100 staff and is headquartered in Melbourne, Australia.
About Ace Payroll
Ace Payroll has been providing payroll software to thousands of New Zealand businesses for over 20 years. It was founded by Wellington businessmen Julian and Phil Eriksen. In the past two decades, Ace Payroll has become known for its easy-to-use software and dedicated focus on delivering superior customer service.