Wave of consolidation surges through business software sector

The business software market has seen a spate of consolidation in the recent
weeks, with MYOB and Iris making significant acquisitions, and experts
predicting further deals.

Dennis Keeling, chief executive of the
Business Application Software
Developers’ Association
, says the
and Iris deals are part of a wider consolidation trend in the industry.

‘The sector is experiencing heavy consolidation. Large companies want to
become larger, but it is often difficult to originate content internally so they
are making acquisitions in content hotspots,’ Keeling says.

MYOB bought Dosh and intends to promote the payroll software of its new
purchase to supplement MYOB’s core business management product range. The deal
also sees MYOB grab Dosh’s Business Planning Software and Cashbook.

Managing director of MYOB UK, Richard Allen, says the Dosh deal provides ‘a
solid foundation for delivering enhanced services to British businesses’, and
will help the company to grow its share in the small business market.

Rival Iris recently acquired tax software specialist PTP Software and
Professional Tax Practice in a deal that will boost its revenues to £42m and
grow its employee numbers to 360.

Tim Good, managing director of PTP, said the combination of Iris and PTP
would create a strong market player and ‘an excellent synergy’.

Martin Leuw, Iris group chief executive said the deal would help enhance its

Customers will be watching the consolidation with interest. Acquisitions of
developers raise questions about the support customers will receive if their
provider is acquired.

Users of SunSystems and Pegasus, products of Systems Union, await news on the
purchase of Systems Union by Infor.

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