ASX-listed MYOB Group has divested its Canadian business to software publisher Intuit Canada for $11.4 million.
According to Matthew Critchley, MYOB chief operating officer,the Canadian business recorded a significant operating loss in the first half of 2001, despite significant investment from the MYOB Group.
"Our Canadian business operated within a very competitive environment in a maturing market. Faced with this, we felt that it would be difficult to increase our market share via organic growth," Craig Winkler, MYOB chief executive officer, said.
MYOB will use the proceeds of the sale, which took place on November 9, to concentrate on developing other markets.
According to Critchley, MYOB is looking to invest the funds in Asia, where it has developed a Chinese version of its software to be sold in Hong Kong. It is also looking to invest further in Latin America, in countries such as Mexico, Chili and Colombia, following the release of a Spanish version of its business software.
MYOB Canada contributed $6 million of MYOB's overall $70 million revenues. Its sale will see the group's overseas revenue of 40 per cent drop slightly, an outcome that is at odds with MYOB's plans to focus on generating overseas revenue.
The accounting software vendor projects revenues for 2001 to be in the order of $65 million to 70 million, with an operating loss before tax of around $1 million.