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RECKON LIMITED — Capital/Financing Update 2021
Feb 15, 2021
65708_rns_2021-02-15_6a997799-02a3-4466-88b2-8a5e3d5d56a7.pdf
Capital/Financing Update
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ASX Announcement
16 February 2021
Sale of ReckonDocs Business
Reckon Limited is pleased to announce that it has reached agreement with NowInfinity Pty Ltd (a wholly owned subsidiary of Class Ltd) and Class Ltd (the Class Buyer Group), to sell the assets comprising the ReckonDocs Business to the Class Buyer Group.
The purchase consideration is $13 million dollars.
The transaction is unconditional.
It is anticipated that the transaction will complete on 1 March 2021.
The intended use of the funds received will be to reduce Reckon’s debt, and to provide additional development funds for Reckon’s “cloud first” development strategy for small business accounting and payroll, and practice management for accountants and lawyers
The Division contributed revenue of $5 million and EBITDA of $3 million to the 2020 Reckon Group results.
The ReckonDocs Business is currently part of Reckon’s Accountant Practice Management Group and is a provider of company formations, trust deeds and other related documents and services.
The sale of this business will enable a stronger focus in Reckon’s core cloud software initiatives with the added benefit of a tighter integration of our Accountants Group products with Class products over time.
Reckon Group CEO, Sam Allert said :
“The sale of ReckonDocs, allows us to focus on our core strengths of acounting and payroll for small businesses, and practice management for accountants and lawyers. We also gain a strong integration partner with Class and will be able to offer a fully integrated suite of software for accounting firms throughout Australia with Reckon APS and Class products.”
AUTHORISED FOR RELEASE BY THE BOARD OF DIRECTORS OF RECKON LIMITED
For further information, please contact: Mr. Chris Hagglund Mr. Sam Allert Group CFO Group CEO Reckon Limited Reckon Limited (02) 9134 3360 (02) 9134 3310
Reckon Limited ABN 14 003 348 730 | Level 2, 100 Pacific Highway North Sydney NSW 2060 Australia