MYOB reckons no

SOFTWARE group MYOB has dumped a $180 million deal to acquire the Australian and New Zealand assets of Reckon’s Accountant Group.

MYOB said the deal had a six-month sale and purchase agreement and the regulatory process had taken longer than anticipated, with both parties unable to agree on terms to extend the contract.

MYOB chief executive Tim Reed said the further potential delays involving both the Australian Competition and Consumer Commission and New Zealand’s Commerce Commission had created uncertainty in Reckon, with the potential to impact on its trading.

The company would now accelerate the pace of its share buy-back program and organic investment, he said.

““Whilst the acquisition will not complete as planned, we are excited about the opportunity to accelerate the organic growth in our business,” Mr Reed said.

Mr Reed said he was confident underlying earnings margins during this investment period would be above 40 per cent.

He said use of online accounting was expected to double over the next eight years.