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Class makes acquisition, profit up

The SMSF technology platform has announced the acquisition of the documentation service of an accounting software provider and recorded a 3.2% increase in statutory profit to $3.2 million in its half-year results.

Class is acquiring ReckonDocs for an enterprise value of $13 million with the transaction expected to be completed on March 1.

ReckonDocs is used by over 2000 Australian businesses and its services of company registrations, trust deeds and SMSF deeds will be incorporated into Class' NowInfinity platform.

Class chief executive Andrew Russell said the acquisition will drive Class' market share in the legal documentation and corporate compliance space.

"The addition of ReckonDocs will see Class with approximately 14% market share by revenue of the corporate compliance and documentation segment," he said.

"We are committed to delivering our customers the most comprehensive and integrated suite of services available in the markets we operate in, and this acquisition will also deliver ReckonDocs clients an expanded set of products and services to add further value to the relationship."

This is the third acquisition in just over 12 months, following the acquisitions of NowInfinity and Smartcorp.

Class reported 27% revenue growth on the previous year to $25.9 million while EBITDA increased 29% to $10.4 million.

In addition, the technology provider's customer base increased 183% to 4456 customers. Its recently launched Class Trust is used by 175 accounting businesses and manages more than 2700 trusts.

Class also noted that integrated financial advisory firm Findex has signed up to the NowInfinity Documentation Suite for its national accounting network.

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