MYOB and GreatSoft both supply practice management software to medium-to-large accounting firms. MYOB offers desktop practice management software, and GreatSoft offers a cloud-based solution.
The ACCC’s decision not to oppose the acquisition follows its investigation focused on GreatSoft’s potential to grow into a strong competitor, given that GreatSoft had succeeded in winning a number of medium-to-large customers, including MYOB customers, when it first launched its product in 2019.
However, the ACCC says it has concluded that GreatSoft will likely face challenges expanding its small customer base in the short to medium term if the acquisition does not go ahead.
“GreatSoft’s growth has been limited since it entered the market and we saw little evidence that it would grow to be a significant force in the market in the short to medium term,” ACCC Commissioner Stephen Ridgeway said.
“GreatSoft would have to manage market uncertainty arising from this transaction, maintain integrations with third parties, some of whom are competitors, and its prospects did not look good given it has missed the prime selling window for accountants to switch on 1 July.”
The ACCC also said it had determined that, following the proposed acquisition, MYOB and GreatSoft would continue to face significant competition from other desktop and cloud-based providers of practice management software, including Xero and Reckon.
“Although Xero Practice Manager has been designed for smaller firms, it continues to attract a number of medium-to-large firms to its cloud-based product and will impose a strong competitive constraint on a combined MYOB and GreatSoft,” Commissioner Ridgeway said.
As reported by iTWire, this week the ACCC also announced that it will not oppose the acquisition of comparison website, Compare the Market, by Innovation Holdings Australia that would result in it holding up to 35% of shares in iSelect, a major competitor to Compare the Market.