Sydney, Nov 11, 2005 (ABN Newswire) - MYOB Limited (ASX: MYO) today announced that it has entered a joint venture agreement with Jin Cai, a local SME software provider in China based in Chengdu.
MYOB products have been sold in Asia for almost 10 years and MYOB has been servicing the growing Chinese SME market through its Hong Kong operation since 2000. The joint venture with Jin Cai extends MYOB's Asian operation into mainland China with the local expertise of an existing enterprise. MYOB is investing A$2 million to attain a 95% shareholding in Zhi Guan Technology, the joint venture company, including around A$1 million of deferred consideration should performance hurdles be achieved over the two year period ending 31 December 2007.
The joint venture company will acquire the existing Jin Cai business. MYOB will also receive an option to acquire the remaining equity in the joint venture company.
China has a rapidly developing economy experiencing a high rate of computerization. Accordingly, a growing number of small-to-medium business owners are adopting computerized business management solutions. MYOB has been investigating its options in mainland China in recent years, and is now ready to realize the opportunity of adding this significant new market to the company's global customer base.
MYOB will fund an investment in marketing and development for the business over the next three years to build a strong market position in mainland China. MYOB will provide further information in relation to this investment in coming months.
MYOB Chief Executive Officer, Craig Winkler said, "We've been evaluating the extension of our Hong Kong operation into mainland China for some time now, and researched our options thoroughly. We are pleased to be moving into the operational phase of taking on a new world of MYOB customers. MYOB's experience around the globe, coupled with the local knowledge of our partner and our wider Asian operations, puts us on a firm footing for long term success."
MYOB will adapt its existing products for Chinese businesses, an undertaking in which the company already has considerable experience. Bilingual English/Chinese MYOB software products are already available in Hong Kong today.
MYOB is a global provider of solutions that liberate business owners and accountants from the burden of day to day administration, empowering them to achieve business success. MYOB develops and delivers award-winning software, services and support for more than 500,000 businesses and over 10,000 accounting practices worldwide.
Owner-operated businesses are the most dynamic force in the world economy and yet they are universally challenged by limited resources. MYOB uses its knowledge, expertise and scale to help them build better businesses.
MYOB also works directly with accounting practices to streamline their processes and maximise their productivity. MYOB solutions are used by leading accounting practices from tax agents and sole practitioners to the 'Big 4' firms.
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