MYOB finds its solution

Software solutions developer Solution 6 has sold part of its business to a US-based equity fund and merged the remainder with small business accounting software maker, MYOB.

Software solutions developer Solution 6 has sold part of its business to a US-based equity fund and merged the remainder with small business accounting software maker, MYOB.

Solution 6 has a strong New Zealand connection through its relationships with local companies Exonet and Sausage Software.

The company has sold its professional and enterprise business to Francisco Partners for $A34 million and merged the remainder of its accounting and compliance business and training operation with MYOB.

According to MYOB chief executive Craig Winkler, the deal will build a stronger accounting-software-focused company.

"We will combine the complementary ranges of software products and services for accounting firms currently provided by MYOB and Solution 6. Accounting practices across Australia, New Zealand, Asia and Europe will benefit from an improved product and services mix and more powerful support and product development functions."

Solution 6 sold the management consultancy division of Exonet back to co-founder Mark Loveys last year. Loveys and Maurice Bryham founded Exonet to develop accountancy software - designed by Loveys - for PC assembler PC Direct. Loveys says Solution 6 had been in talks with MYOB for several years.

"Even back when we were talking with Solution 6 they'd been in discussions with MYOB about some kind of deal."

Loveys says Solution 6 had gone through a period of buying other companies but then decided to "stick to its knitting" and sold off parts of them, including Exonet.

"Tim Molloy, the guy who bought Exonet for them, is now the CEO. He lead a management buyout in effect."

Loveys says the fit between Solution 6 and MYOB isn't immediately obvious.

"It will be interesting to see how they get on. I suppose they'll just be another diversified company in effect."

MYOB has a development centre in Christchurch which currently employs around 30 people. MYOB spokeswoman Caroline Jackson was not immediately available for comment.

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