While this investment will not be earnings per share (EPS) accretive to Countplus in the immediate term, the company said it represents a strategic investment which complements its accounting services business.
“I’ve followed the progress of Class closely over the last few years and have been pleased to see their success, given the important role they have played in improving efficiency in SMSF administration for accountants,” said Countplus chief executive officer Michael Spurr.
Countplus’ investment will accelerate Class’ new Super and non-Super product development, with Countplus funding this investment from borrowings.
“While we already have a long and rewarding relationship with [Countplus] as a user of our software, their addition as a shareholder allows Super- IP to more closely tap into their distribution and accountant partnerships capabilities,” said Class chief executive officer Rajarshi Ray.
In addition, Class is now cash flow positive, and has stated it intends to list on the ASX close to 2016, according to the announcement.