(Adds background, details from Myob statement)
Nov 16 (Reuters) -
Australian accounting software provider Reckon Ltd RKN.AX said on Thursday it would sell its accounting practice management software business to MYOB Group MYO.AX for A$180 million ($136.57 million) in an all-cash deal to pay off debt.
Reckon said in a statement it intended to use the proceeds from the deal to repay "the majority of its debt" and pay a special dividend to shareholders.
Myob in a seperate statement said it would acquire all clients, intellectual property, systems and processes, and take in all employees of the Reckon accounting practice software business, including sales, consulting and support teams.
Reckon which has about A$52.6 million in debt as at 2016 intends to use the proceeds from the deal to repay "the majority of its debt" and pay a special dividend to shareholders.
MYOB's acquisition of Reckon is the company's second buy this year after it bought online payment service provider Paycorp for A$48 million in February . said it would fund the deal by debt and that it expected the purchase to be earnings per share accretive on an underlying basis immediately.
($1 = 1.3180 Australian dollars)