MYOB has agreed to acquire Wellington-based Ace Payroll Plus Limited for a purchase price of NZ$14 million, a move the company hopes will strengthen its hand within the payroll and accounting solutions market.
Acquired in the backyard of Wellington headquartered industry rival Xero, Ace Payroll becomes the third New Zealand company to be acquired by MYOB in two years, following the integration of BankLink and PayGlobal in 2013 and 2014 respectively.
“I am delighted that MYOB is uniting with Ace Payroll,” says James Scollay, General Manager, SME Solutions, MYOB.
“Together we are the most experienced and the most popular provider of payroll solutions in New Zealand.”
Ace Payroll provides payroll solutions for thousands of New Zealand SMEs and similarly to MYOB, it has been in this market for over 20 years.
“Paying staff on time and ensuring they meet compliance obligations is critical for small businesses. It’s therefore essential that SME employers not only have the best tools, but also the right support,” Scollay adds.
“MYOB has extensive experience in payroll and supporting customers in running their payroll. We understand that when customers need advice about payroll, they need it straight away.”
Scollay says that the transaction is scheduled to be completed around 31 May 2015.
“We’re very proud of the business we have built over the past 20 years and we believe that uniting with MYOB is the best possible outcome for our customers,” adds Phil Eriksen, founder, Ace Payroll.
Going forward, Scollay says the acquisition also demonstrates the company’s “admiration and appreciation” for Kiwi innovation and technology.
“In addition to investing in great local technology businesses, MYOB employs over 335 staff in New Zealand,” he adds.
“Of those, a quarter are employed in product development. We also have call centres in Auckland and Christchurch so that our Kiwi customers are supported by New Zealand-based customer service representatives.”
Scollay says MYOB’s research and development spend - over $100 million in the past three years - is “entirely focused” on the New Zealand and Australian markets.
“Not having to split our resources across multiple regions means that MYOB can provide SME payroll and accounting solutions specifically for small businesses in A/NZ,” he adds.
In addition, Scollay says MYOB’s investment in Ace Payroll further supports the company’s strategy of providing the right tools for every business size.
“From start-ups with one employee, through to mid-tier companies employing up to 1000 people - MYOB has it covered for payroll and accounting solutions,” he adds.
MYOB also announced today that it is embarking on the development of the next generation of online payroll solutions.
Scollay says the company will leverage the experience it has gained in this market to extend the capability of its online payroll tools.
As a result, MYOB is experiencing strong uptake of its online solutions, with 67% of new customers choosing cloud solutions in Q4 2014.
“With our new online payroll solutions, our goal is to remove complexity and create even simpler solutions to help SME owners build better relationships with their staff,” he adds.