SMSF technology platform Class has acquired documentation service ReckonDocs and will incorporate the new acquisition into its NowInfinity business.
Class’s acquisition of ReckonDocs, previously part of accounting software provider Reckon, includes the ReckonDocs service platform and platform base.
The firm acquired the document provider for an enterprise value of $13 million, adjusted for working capital. The transaction has a target completion date of 1 March. Classs earnings per share are expected to increase in the 2022 financial year as a result of the acquisition.
The announcement follows Class stating last week that it would spend $18 million building and upgrading its back-end technology as it entered into the second year of its transformation strategy, broadening its offering beyond the SMSF sector.
The company noted ReckonDocs’s suite of products, which include company registrations, trust deeds and SMSF deeds, was a close fit with the NowInfinity product offering and client base.
Class chief executive Andrew Russell said: “We will continue to strategically grow the Class business to ensure we provide our customers a world-class offering and build leadership positions in the markets in which we operate.
“This acquisition will accelerate the market leadership role Class will play in the legal documentation and corporate compliance marketplace and allow Class to drive industry innovation as we have achieved in the SMSF administration market with Class Super.
“The addition of ReckonDocs will see Class with approximately 14 per cent market share by revenue of the corporate compliance and documentation segment.
“We are committed to delivering our customers the most comprehensive and integrated suite of services available in the markets we operate in, and this acquisition will also deliver ReckonDocs clients an expanded set of products and services to add further value to the relationship.”
Reckon chief executive Sam Allert said: “Reckon’s strategy is now focused on small business accounting and payroll, and practice management for accounting and legal firms and the strong synergies this brings across our addressable markets. Consequently, we have taken the decision to divest the ReckonDocs platform to Class Limited.
“The acquisition provides ReckonDocs customers with access to the market’s leading document platform and product set. This also creates an opportunity for two market-leading software companies to partner and integrate our products to provide an integrated holistic solution to accounting firms.”