Australia-based corporate accounting firm MYOB reached a deal to acquire corporate payments company Paycorp, reports said Thursday (Feb. 23).
MYOB will buy up the company for just over $37 million, the firms revealed, and the merger is expected to be completed by April 1 of this year. In a statement, MYOB CEO Tim Reed said the takeover is part of MYOB's broader strategy to expand its offerings to corporate customers and compliments the company's recent launch of PayDirect Mobile and PayDirect Online, which have collectively boosted the volume of transactions on the MYOB platform by 64 percent in 2016.
"We are pleased to announce this deal with Paycorp, which brings significant growth opportunity for us in the payment services industry," the executive said. "We know from our clients that cash flow is consistently the number one pain point for small business operators, and we are delighted that we can bring together a solution that enables our clients to reduce administration time and costs and improve cash flow through the automation of payment services for their businesses."
He added that the acquisition positions MYOB as the first in the corporate accounting market that has an integrated payments solution.
"We are excited to join forces with MYOB, a market leader providing online solutions to businesses across Australia and New Zealand," said Paycorp CEO John Caliguri in another statement. "This is the opportunity we've been looking for to deliver fully integrated payment solutions to many more clients across Australasia and thereby help them improve their cashflow."
MYOB has tweaked its business strategy multiple times in recent months. Late last year, the company said it migrated to Amazon Web Services to consolidate its data for better management purposes and months prior said it would shift gears in an effort to provide a more holistic service to its SME customers by merging all of its units, including transaction processing, compliance and advisory services.