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- Software company Reckon (RKN) to sell its Accountants Practice Management Group to the Access Group for $100 million
- Reckon says the transaction is the best for the company as it can focus on its business and legal groups
- The sale is an all cash deal and includes the APS Practice Management and the Reckon Elite Practice Management products, but remains subject to regulatory approvals
- Proceeds from the sale will go towards a special dividend to Reckon shareholders
- Company shares jump 44 per cent to trade at $1.26 per share at 11:36 am AEST
Software company Reckon (RKN) has agreed to sell its Accountants Practice Management Group to Access Group for $100 million.
Access Group is a leading provider of business management software solutions company.
Reckon believes the transaction is the best for the company as it can focus on its business and legal groups.
The sale is an all cash deal and includes the APS Practice Management and the Reckon Elite Practice Management products.
However, the deal is subject to approval from the Australian Competition and Consumer Commission and the Foreign Investment Review Board, as well as customary closing conditions.
Reckon CEO Sam Allert said the sale agreement is in “the best interests of our shareholders.”
“Reckon will be in a stronger position to focus on and invest in the growth and development of the Business and Legal Groups, should the transaction complete. These divisions represented approximately 70 per cent of the company’s revenue and 60 per cent of the company’s EBITDA prior to this transaction and we believe have significant upside,” he said.
“This transaction would allow us to focus on our remaining business divisions. We plan to build on our 114,000 cloud users, to expand our suite of accounting and payroll cloud solutions and continue to help small businesses turn ambition into accomplishment, as well as pursue our practice management opportunities in the global legal market.”
The company said the majority of the proceeds from the sale will go towards a special dividend to its shareholders.
Reckon shares jumped 44 per cent on the market to trade at $1.26 per share at 11:36 am AEST.
