Reckon buys stake in Melbourne IT

Accounting software provider coughs up $7.3 million for 4.97 per cent of Melbourne IT

Accounting software provider, Reckon, has purchased 4.97 per cent stake in Melbourne IT to the tune of $7.3 million.

The shares have been acquired using existing cash reserves and debt facilities.

The purchase fits within Reckon’s strategy to operate within an online environment.

Reckon doesn’t have intentions to further extend its shareholding beyond 4.97 per cent, but will look into a commercial relationship with the company.

Reckon Group CEO, Clive Rabie, told ARN it experienced a lot of demand within the online segment.

“Melbourne IT has services that if we wanted to, we could make available to our customers,” Rabie said. “By having a commercial relationship with Melbourne IT, we would be able to offer those products.”

Rabie said it embarked on its online strategy about a year ago and started looking at more types of services to offer customers.

“When you take on a partner that is as strategic as this, you do want to have some sort of control in that relationship by taking a commercial strategic stake as well as having an agreement,” he said.