MYOB completes acquisition of Paycorp

MYOB will be the first to market with an integrated payment and accounting solution for its client base in Australia and New Zealand, which will enable clients to improve cashflow and administration processes through the automation of payment services in their businesses.

MYOB entered into a sale and purchase agreement to acquire 100% of Paycorp, for a total consideration of USD 36.5 million. The acquisition has been funded by MYOBs existing cash reserves and is EPS accretive from completion date.

Paycorp currently provides a payments service to over 6,500 clients across multiple industries, allowing customers to receive and process payment transactions (such as credit card, direct debit and BPAY).

MYOB will be the first to market a solution which enables businesses to automate payment services which, in turn, creates efficiencies in cash flow and reduces administration time and costs for clients.

The acquisition follows the introduction of MYOBs PayDirect Mobile in December 2015 and PayDirect Online in May 2016, which led to a growth of more than 10,000 transactions in PayDirect mobile and more than 7,000 transactions in PayDirect online by the end of 2016.

With an existing client base of around 1.2 million small to medium sized businesses, the growth opportunity for MYOB in the payment services sector is considerable and has the potential to expand MYOBs Total Addressable Market.