MYOB's proposed acquisition of Solution 6's accounting and compliance business is unlikely to pose a threat to competition in the marketplace, according to the Australian Competition and Consumer Commission (ACCC).
The watchdog has said it won't oppose the move, saying said he proposed acquisition was unlikely to 'result in a substantial lessening of competition'. Both companies are Australian based and provide software to accounting and other businesses.
Craig Winkler, CEO at MYOB, told iTnews the decision was a welcome one.
Winkler argued that it validated the 'dynamism of the industry and its constantly changing landscape'.
'That ensures great value for customers and an ongoing challenge for everyone in the industry,' Winkler told iTnews. 'MYOB's ambitions have always been customer driven, and the merger with Solution 6 is going to facilitate an even greater level of service delivery across market segments as we move forward.'
Graeme Samuel, chairman at ACCC, said in a statement that it had carefully considered the competitive impact of the proposed acquisition in the market for business management application software. 'The ACCC found that although the merged entity would enjoy a significant market share, the new business would come under increasing competitive pressure from other expanding software suppliers,' he said.
'Additionally, the ACCC considered that the presence of other strong competitors, including among others APS, Quicken and Handisoft, and the real threat of new entrants to the market, is likely to operate as an effective competitive constraint on the merged entity, thereby constraining attempts to raise prices to customers.'
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