Novatti receives $12.8m special dividend from Reckon to further strengthen its balance sheet

Novatti Group Limited, a leading fintech that enables businesses to pay and be paid, has announced that it has now received a $12.8 million special dividend from its 19.9% strategic stake in ASX-listed Reckon Limited.

The special dividend of $0.57 per share, 60% franked, was announced by Reckon Limited on 27 October 2022 and has been distributed from the $100 million sale of its Accountants Practice Management Group (APMG).

Since acquiring its strategic stake in Reckon Limited in July 2021, Novatti has now received a total of $14.6 million in dividends while its 19.9% interest remains in place. In addition, Novatti and Reckon have also formed a strategic business partnership to offer payment services to Reckon’s 117,000+ cloud-based users, with this partnership not impacted by the APMG sale.

Novatti’s Managing Director, Peter Cook, said, “Novatti and Reckon have built a strong partnership since we acquired our strategic stake last year. This partnership continues to be supported by clear synergies between our respective accounting and payments solutions.

“Importantly, our joint marketing efforts for this partnership are gaining traction, bringing through new prospects and customers.”

“The $12.8 million special dividend from Reckon further strengthens Novatti’s balance sheet. It comes at the same time that Novatti has shifted its focus to delivering positive cashflow,” Cook ended.

Disclosure: At the time of writing, Australian FinTech Pty Ltd is a shareholder of Novatti Group Limited.