The transaction includes the complete acquisition of the ReckonDocs platform and customer base, for an enterprise value of $13 million adjusted for working capital. The transaction has a target completion date of 1 March and is expected to be earnings accretive in FY22.
Class said ReckonDocs is a natural fit for its services, and its product suite including company registrations, trust deeds and SMSF deeds will be incorporated into Class’ NowInfinity platform.
The firm said the ReckonDocs acquisition would also fast-track the firm’s market leadership position in the new market segment following the acquisitions of NowInfinity in January 2020 and Smartcorp in August 2020.
“We will continue to strategically grow the Class business to ensure we provide our customers a world-class offering and build leadership positions in the markets in which we operate,” Class CEO and managing director Andrew Russell said.
“This acquisition will accelerate the market leadership role Class will play in the legal documentation and corporate compliance marketplace and allow Class to drive industry innovation as we have achieved in the SMSF administration market with Class Super.”
The addition of ReckonDocs will see Class with approximately 14 per cent market share by revenue of the corporate compliance and documentation segment.
“We are committed to delivering our customers the most comprehensive and integrated suite of services available in the markets we operate in, and this acquisition will also deliver ReckonDocs clients an expanded set of products and services to add further value to the relationship,” Mr Russell said.
Reckon CEO Sam Allert said Reckon’s strategy is now focused on small business accounting and payroll and practice management for accounting and legal firms.
“Consequently, we have taken the decision to divest the ReckonDocs platform to Class Limited. The acquisition provides ReckonDocs customers with access to the market’s leading document platform and product set,” Mr Allert said.
“This also creates an opportunity for two market-leading software companies to partner and integrate our products to provide an integrated holistic solution to accounting firms.”