He’s spent almost a third of his life at MYOB, survived three equity buyouts and the company’s float on the stock exchange but now Tim Reed is stepping down as CEO of the leading Australian accounting solution.
Reed joined the company some 16 years ago and has led MYOB as CEO for the past 12 years. He faced his first private equity buyout in 2008, a few short months after taking on the top job. Three short years later, a second buyout by Bain Capital proved the making of MYOB, with Reed delivering massive gains for the company’s investors. In 2015 Bain listed the company on the ASX maintaining a 58 per cent share. All the while, Reed remained a constant at the company, as he successfully spearheaded the charge to take MYOB from a desktop software provider to a leading online accounting subscription service for the nation’s small business owners.
2018 proved a rollercoaster year for MYOB and Reed. Global investment firm Kohlberg Kravis Roberts (KKR) swooped in to make a play for the accounting solution company buying up 17 per cent of the shares in October and continued to push for acquisition as the year rolled on. In April 2019 KKR made its best and final offer of $2b for the company with shareholders approving the takeover bid on April 17. By May 8, MYOB ceased to trade on the ASX. the buy out marked the fifth time the company changed hands in the past twenty years.
In a statement to media today, Reed announced he has decided to step down from his role at MYOB, although he will remain as an adviser to the company. Greg Ellis, former CEO of Scout 24 AG has been named as Reed’s successor and is expected to take the reins in September.
Scott Bookmyer, MYOB Board member and Head of KKR Australia, hailed Reed for his service to MYOB during his tenure.
“We are deeply grateful to Tim for his service as CEO and are delighted that MYOB will continue to benefit from his expertise and vision in his capacity as an advisor to the company,” he said.
Bookmyer praised Reed for his leadership of the brand for more than a decade, suggesting the CEO had built a great and innovative tech company.
“Tim’s leadership at the helm of MYOB for the past 12 years has built a truly great and innovative technology company that is positioned for exciting growth.”
Reed described serving as the CEO of MYOB as an “absolute privilege” and highlighted a number of highlights from his tenure.
“In that time, we’ve transformed from being a provider of desktop solutions to a leading online subscription business and our Connected Practice strategy defines a new era for our industry.
“MYOB is now at an inflexion point, meaning it is the right moment for me to step down in order to let the next CEO own and drive the transformation project forward. I remain a committed investor and look forward to seeing the business reach new heights in the years ahead.”
Speaking of incoming CEO Greg Ellis, Bookmyer suggested the exec is a heavy hitter in the industry with a distinguished track record of building high growth technology companies.
“His deep industry knowledge and ability to deliver value during his more than 30-year career at companies including Scout 24 and REA gives the Board confidence in his ability to lead MYOB forward into its next phase of growth.”
For his part, Ellis says he is excited by the potential to grow the iconic Australian and New Zealand technology business.
“The opportunity to join MYOB just as the business starts its next phase of development, coupled with supportive investors and a clear go forward strategy, is a really exciting proposition.
“I look forward to getting to know the team, clients and partners in the weeks to come, and making rapid progress toward our transformation goals when I join in September.”
Who is Greg Ellis
Ellis has more than 30-years of business experience with over ten as a CEO leading online businesses across the digital advertising, e-commerce, telecommunications and software industries.
He has worked in Australia, Asia and Europe running both public and private companies and most recently served as CEO of Scout 24 AG, where he was responsible for the commercial operations of the company and was instrumental in its public listing on the DAX in 2015.
During his tenure at Scout 24, Ellis implemented a new operating model for the business improving revenue, reducing net debt and increasing investor returns. Prior to that he was CEO of Australian online real estate company REA Group from 2008 to 2014, where he led the development of a product strategy that resulted in sustained profitable growth for the company and a 650 per cent increase in market capitalisation.