Reckon announces strategic acquisition

Reckon (ASX:RKN), an Australian software company, announced its acquisition of Cashflow Manager and OKKE, two Adelaide-based software businesses. The $8.75 million deal is expected to complete in January 2025 and will be financed through Reckon's existing bank facilities. The acquisition is anticipated to be EPS accretive, contributing significantly to revenue and profit in FY2025.

Acquisition strengthens Reckon's market position

Reckon's acquisition of Cashflow Manager and OKKE for $8.75 million aims to enhance its cloud-based solutions and expand its client base. The deal will be completed by early January 2025 and is expected to be EPS accretive, with projected contributions to revenue and profit for FY2025. Reckon plans to integrate the 20,000 clients and 1,000 advisers into its ecosystem while transitioning them to cloud-based products. This acquisition supports Reckon's strategic goals of growing its market presence and investing in cloud technology, bolstering its position in the SME accounting software sector.

CEO comments on strategic fit

We are excited about the acquisition and the strategic fit it represents. It expands our cloud-based offerings and aligns with our strategy to transition customers to proprietary cloud products, enhancing our client base, partner channel, revenue, and cash flow.