SuperConcepts, the SMSF arm of AMP, has acquired Reckon's Desktop accounting platform for $2.5 million.
The purchase comprises an initial payment of $1.25 million and with the potential for an additional $1.25 million at the end of a two-year earn-out period, a Reckon ASX announcement said.
The acquisition increases market share across both administration and software services from 6.8 per cent to 9.7 per cent, according to SuperConcepts.
SuperConcepts said it has also formed a strategic alliance with Reckon so the two can leverage each other’s expertise and industry relationships.
Natasha Fenech, CEO of SuperConcepts, said the acquisition and strategic alliance is another step forward in growing the SuperConcepts business as an end-to-end service provider in the SMSF market.
“Reckon is a highly-regarded provider of accounting software services. We’re excited to form an alliance that will help us to enhance the level of service and technology available to SMSF trustees and their advisers,” she said.
“SMSF software continues to be a key part of our strategy and we will continue to invest in the technology as we expand our service to become a market leader in SMSF software solutions and partner of choice for the SMSF industry.”
Sam Allert, managing director of Reckon for Australia and New Zealand, said Reckon is thrilled to be working with SuperConcepts, adding it was “the start of a powerful partnership”.