Australian small business cloud accounting firm MYOB is moving closer to an acquisition by private equity firm KKR, but in the meantime, the company is keeping up with market shifts.
Most notably, Australia’s introduction of Single Touch Payroll (STP) mandates has prompted MYOB and other industry players to upgrade their services to promote tax compliance for corporate users.
Reports in Business IT on Wednesday (April 3) said MYOB and industry rival Xero have both launched new Single Touch Payroll solutions for companies with between one and four employees. Under the new rules, which come into effect on July 1, 2019, businesses with fewer than 20 employees have to submit payroll information to the Australian Taxation Office on every payday.
Intuit, which owns QuickBooks, also revealed plans to roll out its STP-compliant solution for smaller businesses, while Reckon will roll out a payroll-only STP software offering or an STP-compliant accounting software solution that includes more features for companies.
Amid the new requirements, Australia’s small business accounting technology market continues its own market shifts. Most recently, that includes the proposed acquisition of MYOB by KKR. Separate reports in The Sydney Morning Herald on Wednesday (April 3) said Manikay Partners, MYOB’s second-largest shareholder with 16 percent of the firm, has reluctantly agreed to the more than $1 billion takeover.
“We remain very disappointed that, despite our repeated efforts to convince you otherwise, you failed to change your recommendation in light of the material improvement in market conditions since announcement of the scheme, among other factors,” the hedge fund wrote in a letter sent to MYOB Chairman Justin Milne. “We are also disappointed that the disclosures to MYOB shareholders did not fully explain the impact of such improved market conditions on the value of MYOB.”
The acquisition efforts follow MYOB’s own failed takeover attempt of Reckon. In the wake of that deal’s collapse, Reckon has announced plans to white-label its solution and pull out of the industry that markets accounting software directly to small businesses.