Accounting software firm MYOB is paying $136 million for a New Zealand-based online banking business to make it more competitive in the cloud-based market.
MYOB says buying BankLink from Media Transfer Services, which it says is a key strategic move, will build on the strengths of both companies and position it to lead the industry growth area of cloud accounting.
The general manager of MYOB's small to medium-sized businesses division, James Scollay, says the purchase brings together two market leaders.
A notable competitor is theaccounting software company Xero.
Xero welcomes purchase
The founder and managing director Xero says the MYOB purchase is great news for his company.
Rod Drury says his company's phones have been "ringing off the hook" because accountants don't want to have to deal with MYOB.
"This is great news for Xero - a major competitor has folded up, they've sold their business."
He says there was a bit of residual loyalty to BankLink, but the accounting industry doesn't have the same feeling of loyalty to MYOB.
Mr Drury says over the last few years his company has been superceding what BankLink does.