MYOB acquires Greentree
01 Aug 2016
Leading provider of online business management solutions, MYOB Group Limited (ASX: MYO) today announced the acquisition of Greentree for a total consideration of NZ$28.5 million.
Headquartered in Auckland, Greentree delivers leading enterprise resource planning (ERP) software to over 850 larger businesses across Australia, New Zealand, UK and US. With over 25 years’ experience, Greentree distributes via a partner channel into the enterprise market, comprising companies with approximately 100 – 1,000 employees. Its product suite has broad, on-premise ERP functionality and licensing is primarily perpetual with annual maintenance.
MYOB helps businesses succeed by providing online business management solutions for its 1.2 million clients across Australia and New Zealand (ANZ). The company’s Enterprise Solutions division is a leader in the ANZ enterprise market, delivering ERP and HRM (human resource management) software to over 7,000 clients with approximately 20 - 500 employees.
Enterprise Solutions is a growing part of the MYOB business, contributing A$41 million of revenue in FY15), up 4 percent year on year, underpinned by the successful integration of PayGlobal, acquired in August 2014, and the launch of online solution MYOB Advanced in early 2015. Since its inception 18 months ago, MYOB Advanced has exceeded market expectation across Australia and New Zealand and is now positioned as the fastest growing cloud ERP solution for the mid-market.
The Greentree acquisition enables MYOB to further extend its mid-market leadership into larger enterprise business offerings and apply its marketing and distribution resources to accelerate growth through the existing Greentree channel. MYOB will leverage Greentree’s considerable large company expertise and provide its leading online capabilities to the current Greentree product range.
MYOB CEO Tim Reed said: “We are delighted to announce the acquisition of Greentree, in line with our stated strategy of targeting value-add acquisitions to complement organic growth. 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.”
“We’re thrilled with the growing prominence of MYOB in the ERP space. 2015 saw the expansion of our business with the addition of MYOB Advanced to our market leading EXO Business product line. 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: “This is exciting for our team and a great opportunity to work closely with MYOB to develop and deliver the leading online and on-premise ERP solutions that our clients need to successfully stay ahead in a rapidly changing world. It’s a compelling partnership which allows Greentree to leverage MYOB’s significant scale and resource and tap into new markets.”
The acquisition of Greentree is scheduled to complete on the 1st August this year.
T: +61 3 9944 0692
M +61400 300 913
MYOB Group Ltd (ASX: MYO) is a leading cloud based business management solutions provider. It makes business life easier for approximately 1.2 million businesses across Australia and New Zealand by simplifying accounting, payroll, tax, practice management, CRM, job costing, inventory and more. MYOB provides ongoing support via many client service channels including a network of over 40,000 accountants, bookkeepers and other consultants. It is committed to ongoing innovation, particularly in cloud computing solutions, and in 2015 was awarded the BRW award for the most innovative large company for 500+ employees and placed 2nd in BRW’s Most Innovative Companies Award list across all categories nationally. For more information, visit http://investors.myob.com.au/Investors or follow @MYOB on Twitter.