MYOB targets enterprises with Greentree buyout

MYOB will use a $27 million buyout of business software maker Greentree to expand its reach into enterprises above 500 seats.

The company today said it would buy Auckland-based Greentree for NZ$28.5 million (A$27 million), although A$3.2 million is conditional and for payment between 2017 and 2018.

The acquisition is to be funded from MYOB’s existing cash reserves.

MYOB, through its enterprise solutions division, already offers enterprise resource planning (ERP) software under the brand name EXO, but it targets companies up to 500 employees.

Greentree, by contrast, typically targets companies with between 100 and 1000 staff, giving MYOB the capability to go after a larger set of midmarket enterprises.

MYOB also plans to make use of Greentree’s existing channels to market its other products.

Greentree and MYOB share some similarities in the types of industries where their respective ERP solutions have taken hold, including food and beverage, manufacturing and professional services.