"MYOB is experiencing significant growth in subscribers, including migrations from our non-paying subscriber base, as people move onto our higher value cloud-based service," MYOB boss Tim Reed says.
Xero has bought Instafile for £5.25 million ($10m) in a deal designed to boost its presence in the UK market.
The cloud accounting software company already has a strong presence in Britain. In its half-year result announced last week, Xero said its UK subscriber base had grown 40 per cent
to 355,000 as revenue grew 45 per cent.
Instafile makes a cloud-based accounts preparation and tax filing solution that connects UK accountants, bookkeepers and small businesses to the UK's main tax-gathering agency, HMRC.
The Instafile purchase is Xero's first acquisition since it raised US$300m via a convertible notes issue in October to fund M&A activity.
Xero revealed the Instafile purchase at its latest Xerocon event, but had some of the wind taken out of its sales by MYOB's rival investor day announcement that it has become the fastest growing cloud-accounting software company in Australasia.
