MYOB Exits US Business
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Accounting systems vendor MYOB has exited it loss-making US operations via a management buy-out.

The new owners will take over distribution, sales and marketing responsibilities for the North American market. The management buy-out (MBO) is expected to complete on 3 December 2005.

Although the US operation’s revenue contribution to MYOB would have been around A$5.6 million for the year ending 31 December 2005 this would have resulted in an EBITDA loss. The new owners, however, will get an immediate return on their investment with new product upgrades due this month expected to deliver December revenue of around AUD$0.9 million.

Local management put the decision to sell the US operations down to a “detailed review of MYOB’s” US operations which decided that the strategy required for success in America was significantly different from what was required from the rest of the group.

“MYOB has a long history in the US, but it’s a unique competitive environment. This means that niche tactics are necessary for long-term success. And, strategically, while a niche approach is fantastic and workable for a stand-alone local business like Acclivity, it’s less attractive for a global company like MYOB that aims to have strong synergies between multiple regions to best leverage our scale. So I’m very confident that this is the best outcome for every one involved.” Said Craig Winkler, MYOB’s Chief Executive Officer.

“We firmly believe that this structure delivers the best result for MYOB’s customers, employees and shareholders. And, importantly, our US customers will continue to receive the same world-class products and service that they have always received. We are pleased with the outcome and look forward to working closely with our new US distributor over the years to come.”

The sale has been structured to maintain a relationship between MYOB and the MBO team with the business becoming the exclusive distributor for MYOB products in the United States, providing continued support to MYOB’s customers there.