MYOB pulls out of Reckon deal, shares tumble
MYOB has pulled out of its $180 million deal to buy competitor Reckon's accounting software products in favour of building up its own business, which will result in lower margins and higher spending on product development in the short-term.
The Australian Competition and Consumer Commission was due to make a decision on the deal by June 21, but it had issued a strong statement in March expressing concerns with the acquisition and its effect on competition in the space. MYOB chief executive Tim Reed said an update from last week indicated the competition watchdog was still inclined to block the transaction, forcing the $1.8 billion company's hand.
Subscribe to gift this article
Gift 5 articles to anyone you choose each month when you subscribe.
Subscribe nowAlready a subscriber?
Introducing your Newsfeed
Follow the topics, people and companies that matter to you.
Find out moreRead More
Latest In Technology
Fetching latest articles