Myob Group Ltd (ASX: MYO) shares are currently down 7% after announcing to the market that it will no longer pursue the acquisition of Reckon Limited’s (ASX: RKN) Accountant Group assets.
MYOB is one of the largest accounting software providers in Australia alongside Reckon and Xero Limited (ASX: XRO).
MYOB had been looking to acquire Reckon’s subsidiary to accelerate growth. However, the regulatory process had taken considerably longer than both parties had anticipated and could continue for some time.
The contracted agreement had a six month duration with which all conditions, including regulatory ones, had to be concluded.
MYOB said that its online ledger had trebled from 2015 to 2017 and is growing faster than competitors. The company believes organic investment will serve the company better and it’s targeting 1 million online subscribers by 2020.
The CEO of MYOB, Tim Reed, said: “Whilst the acquisition will not complete as planned, we are excited about the opportunity to accelerate the organic growth in our business.”
Reckon’s share price has fallen by 8% in response to this news.
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