By RICHARD WOOD
Australian Stock Exchange-listed accounting software vendor MYOB has bought New Zealand Accounts Gold for $4.3 million cash.
NZA Gold is a private Auckland business that began in 1991 and created its own software package a couple of years later. It claims to have 10,000 customers in New
Zealand and 200 in Australia.
MYOB says it has 20,000 New Zealand customers, and more than 400,000 in seven countries.
NZA Gold managing director and owner Raymond Davey said he had decided to sell the business because it needed more capital.
He will continue to work at the firm, focusing on software development and the integration of the business.
MYOB New Zealand general manager David Lowe said both businesses would continue as is. The seven staff at NZA Gold would be offered jobs at MYOB.
Lowe said NZA Gold had generally been sold through a dealer channel. MYOB had been sold through retail or public accounting practices.
There was an acceptable payback on the purchase price in the business, Lowe said, and an opportunity to exceed that with new services.
NZA Gold's basic single user version sells for $330 a module.
Six modules - stock, debtors, general ledger/cashbook, point of sale, creditors, and job costing - are available.
MYOB for a single user is an integrated package that sells for $555.
Both firms have multi-user products that are more closely price-competitive.
Last year, MYOB earned $8 million in New Zealand, up 24 per cent and contributing to total earnings before interest, tax, depreciation and amortisation of A$26.1 million.
NZA Gold's turnover was not disclosed but Davey said growth for the first two months of this year was up 50 per cent and 100 per cent up respectively on the same months last year.
NZA Gold
MYOB
