Acquisition increases MYOB's customer base in NZ

By PETER GRIFFIN

Accounting software maker MYOB's purchase of rival Solution 6 will increase its customer base by 25 per cent in New Zealand and the enlarged organisation will seek to strengthen ties between small business and accountants.

Melbourne-based MYOB had revenue of $11.9 million and made a profit of just under $1 million in New Zealand last year.

General manager David Lowe said the Solution 6 buy-out would lead to a "broader product range" for MYOB customers which are typically small businesses and the accountants serving them.

MYOB's management say they will use the A$233 million ($251.5 million) acquisition to reverse a trend identified in company research - that 77 per cent of business owners consider accountants to be their most trusted adviser, but only a quarter approach them for planning advice.

Lowe said a big issue facing businesses was ongoing changes to pay-roll systems following the move to a minimum four weeks of annual leave for employees.

"We haven't seen the pain yet of getting it wrong. That won't happen until we reach the next holiday season," he said.

Businesses were also demanding software that could interface with devices used by mobile work forces.

"We've opened up the database to third-party developers' handheld devices. They're able to interface with our core desktop products," said Lowe.

The company uses software frameworks that support a range of different access types.

"Microsoft .Net features very strongly in our future plans," Lowe said.

MYOB has 85 staff and has hired two people from Solution 6 through the acquisition.

The company is on a marketing drive and is now embarking on a TV advertising campaign.

Lowe said the adverts had been well received, promoting the advertising company to enter the campaign for industry awards.