Christchurch company purchased by MYOB
Australian accounting giant MYOB announced yesterday it had reached an agreement to buy Kiwi tech startup Payglobal.
MYOB general manager of enterprise Andrew Birch said the companies would merge, and he did not expect any jobs to be lost.
PayGlobal is a Christchurch-based company that develops and sells payroll and human resources management software.
Birch said the acquisition was a "key strategic move by MYOB" to unite its New Zealand and Australian markets.
"We think it's an excellent match for the business and will really strengthen MYOB's position in that middle-large business marketplace," he said.
"Joining together the Payglobal business and the [MYOB] enterprise business would really consolidate and leverage the skill set of both."
PayGlobal chairman Greg Lancaster said he was looking forward to accelerated market penetration of its HR and payroll solutions with MYOB.
There was a "natural fit with MYOB's direction, which will offer new and existing clients - as well as the team - exciting opportunities."
Where there was overlap in staff, Birch said "we will look to take those overlap positions out, but will look to redeploy those people."
MYOB initially made an approach to buy the entrepreneurial tech company in May this year.
It had to acquire 75 per cent of shares in order to force other shareholders to sell.
Payglobal's largest shareholder, Infratil, announced today it would sell its 54 per cent shareholding to MYOB, along with all other PayGlobal shareholders.
MYOB would not disclose how much it paid for the business, but Infratil said its 52 per cent shareholding was sold for approximately $9.2 million.
PayGlobal's HR and payroll solutions are accessed by over 500,000 employees in New Zealand and Australia. MYOB has 1.2 million business customers in Australia and New Zealand.