Australian accounting software company MYOB will spend $48 million to acquire local payment solutions provider Paycorp.
The deal is expected to be complete on April 1, and will see MYOB acquire Paycorp's more than 6500 clients across various industry verticals. It will be funded from MYOB's existing cash reserves.
Paycorp offers secure online payments solutions as well as integrated PoS terminal solutions, tokenisation solutions, credit card data storage, and accounts receivable automation.
MYOB said the acquisition would give it a leg up into a $700 million accounting software payment market and bridge the gap between its existing accounting and payment products.
“We know from our clients that cash flow is consistently the number one pain point for small business operators and we are delighted that we can bring together a solution that enables our clients to reduce administration time and costs and improve cash flow through the automation of payment services for their businesses,” MYOB CEO Tim Reed said in a statement.
MYOB announced the acquisition whilst reporting its 2016 fiscal year results.
Its revenue jumped 13 percent to reach $370 million, and its net profit grew by the same amount to $96.8 million.
MYOB attributed the result to 47 percent growth in online subscribers and a boost in its enterprise product offerings.
Its customer base spans 1.2 million small to medium businesses.