UK-headquartered business software provider The Access Group has expanded its accounting software portfolio through a $100 million deal to acquire Reckon’s Accountants Group.
According to Access Asia Pacific president Kerry Agiasotis, the deal is set to bolster the business software provider’s stance in the accounting space following last year's purchase of HandiSoft as part of its acquisition of Sage Group's Australia and Asia businesses.
The deal is expected to close within the next three months and does not include the Sydney-based accounting software provider’s Business and Legal Practice Management Groups, with the latter set to be a major focus for Reckon post-acquisition.
“We are bringing together two businesses with a strong track record over more than 30 years delivering end-to-end solutions tailored to the specific needs of accounting firms in A/NZ [Australia and New Zealand],” Agiasotis said.
“With The Access Group and Reckon Accountants Groups combined industry experience, capabilities and resources, we are uniquely placed to continue to deliver the breadth and depth of software solutions that accounting firms require to adapt their practices to their clients’ rapidly changing needs.
“The combination of our expanded tax and practice management portfolio coupled with cloud technologies and the Access Workspace platform come together to create an exciting set of new possibilities for our accounting customers.”
Sam Allert, Reckon CEO, said the deal is “good news” for the Sydney-based accounting software vendor’s customers, employees and the market.
“We have spent more than 20 years imagining ways to create brave, new and progressive accounting firms. This acquisition is the natural next step to ensuring continued investment in our vision to simplify business for the benefit of all our customers,” he said.
“In joining with The Access Group our teams can broaden the service and solutions available to customers, build on the vision for growth we all share and ultimately make this a reality for our growing client base.
“In addition, Reckon will be in a much stronger position to unlock further shareholder value through the growth and development of the remaining Business and Legal Groups not captured in this agreement. These divisions have represented approximately 70 per cent of the company’s revenue and a significant portion of EBITDA [earnings before interest, tax, depreciation and amortisation] prior to the initiation of this agreement.”
if successful, this acquisition will be the tenth for Access in the Asia Pacific region over the last three years, which includes last year’s purchases of Sage and Perth software vendor Definitiv.