MYOB acquires HR software vendor Flare

MYOB has acquired HR software vendor Flare in a move that the Australian financial management vendor said will expand its offerings to SMEs beyond accounting solutions to solve a more diverse range of workplace problems. 

The acquisition follows MYOB embedding Flare’s onboarding and superannuation services into its platform in November 2020.

Founded in 2015, Flare’s software is used by businesses to manage payroll, employee onboarding and benefits. In late 2021, the company also expanded into banking-as-a-service through a partnership with Westpac. 

In its announcement, MYOB said Flare would continue operating as a standalone business and service its other clients and partners.

The initial focus would be on integrating Flare’s pay and benefits app with MYOB, which the company said would unlock discounts and wellness, a digital wallet for payroll and novated car leasing.

Commenting on the acquisition, MYOB chief executive officer Greg Ellis said: ”MYOB’s position in the employee network is already substantial; one in five employed Australians are paid through our software.”

“When you combine this with Flare’s pay and benefits capabilities, we can provide one of the most unique people management platforms on market, offering business owners value in new ways and in less time. Helping SMEs be more competitive and productive is the ultimate goal.

“Our acquisition of Flare creates pathways for MYOB to connect with businesses in new and deeper ways.

“By offering our customers solutions that drive value within their processes, MYOB can deliver on our vision of being a vital partner in the full lifecycle of Australia’s SMEs.”

Flare co-founder and co-chief executive James Windon said that MYOB’s investment in Flare coincided with Australia’s digital skills shortage and that there was high demand for businesses to access comprehensive employee benefits offerings and digitised onboarding experiences.

“The battleground for talent has never been tougher. Eight in 10 businesses are experiencing skills shortages,” Windon said, citing research by Hays.

“There are fewer unemployed people than there are jobs. Creating an exceptional employment experience has only typically been in reach for bigger businesses with big resources; Flare is passionate about changing that.”