Reckon Limited (ASX: RKN) has reached agreement with MYOB Group Limited (MYOB) for the sale of its Accountants Practice Management business to MYOB (Transaction) for $180 million.
The Transaction includes the sale of the assets comprising the Reckon APS Practice Management business, the Reckon Elite Practice Management business, and the Reckon Docs Corporate Services business.
It is currently anticipated that the Transaction will complete by the second quarter of 2018.
Reckon says intends to use the proceeds to repay the majority of its debt and then pay a special dividend to shareholders. This is expected to occur in the second half of 2018.
Clive Rabie, Group CEO of Reckon said that after the transaction Reckon’s businesses will predominantly comprise the Reckon Business division and the Legal Practice Management division.
We are pleased to have signed a definitive agreement with MYOB to sell the practice management businesses,” Mr Rabie said.
“The sale price offered for the transaction represents a compelling offer which is in the best interests of all shareholders.
“Reckon has always maintained that the sum of its parts is worth more than the value that has been attributed to the whole by the market.
“We have made substantial progress in our achieving our stated goal of unlocking shareholder value.
“We are pleased to advise that in 2017 we delivered $31 million in the de-merger of the Document Management business, based on current market capitalisation.”
