The $22 million deal between CA-Systems and MYOB is on track and should be sealed next week.
Christchurch-based CA-Systems, a provider of software solutions for accounting practices in New Zealand, and Australia's MYOB entered into the agreement last month. The deal is expected to be completed by November 1.
MYOB chief Craig Winkler, in New Zealand last week, says the deal has gone well and "we are going through the process of getting the final contract details sorted out".
Winkler was in New Zealand to "get to know the people and business better and to make sure we have a good understanding of what is happening. We're positive about things moving ahead — we just want to get on with it."
CA-Systems appealed to MYOB as it "represented not only a great team with exceptionally good software for accounting practices but also a team that shared our values and culture", he says.
CA-Systems will be merged with MYOB's Teletax subsidiary in Australia to form a business unit focused on servicing accounting practices.
CA-Systems managing director Mike Chrisholm will become the general manager of the new business unit.
Chrisholm is upbeat about the acquisition and is "looking forward to the impact on the New Zealand market. I believe we can now offer the accounting practices a superb solution because we'll end up integrating MYOB business product into MYOB practice pro-duct — which is our product — and accounting firms are looking for that.
"It is a total solution. There is some work to do on this, but it will happen as it has our priority."
CA-Systems has benefited from the deal as it has managed "to get hold of MYOB's brand name which is well recognised in New Zealand. A total of 13,000 businesses use MYOB here," says Chrisholm.