Editorial Manager/US Team Lead
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Reckon Grows in U.S. With SmartVault Buy

Jan 15th 2016
Editorial Manager/US Team Lead
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Document management, file sharing and storage company SmartVault is now officially part of Reckon, an Australia-based accounting and small business technology services provider.

Financial terms of the deal were not dislosed, but the purchase does make SmartVault a wholly owned subsidiary of Reckon. According to both parties, no management, staff, or location changes are expected for SmartVault, which is headquartered in Houston. In fact, the purchase appears to be welcomed, according to the tone of a letter sent to staff by CEO Eric Pulaski.

He indicated that the move is part of Reckon's acquisition model to acquire “leading companies and operate them independently, as wholly owned subsidiaries,” and assured everyone that SmartVault will continue to operate under its own brand and maintain its employee base and corporate offices.

“Those that know me personally know that this decision did not come without a lot of careful thought on my part,” Pulaski stated in his letter. â€œI started SmartVault with a vision to make people's lives better at work – and I am committed to not only meeting, but also exceeding your expectations with great products and an even better user experience”

Interestingly enough, Reckon already has a document management system called Virtual Cabinet. Three years ago, the company acquired Lindenhouse, based in the United Kingdom, which originally owned Virtual Cabinet. Reckon also recently acquired a small company in the United States called nQueue, which offers document scanning and routing solutions to the legal market.

What's more interesting is that Reckon had tried to establish a U.S. presence last year, but pulled out shortly after the Sleeter Group Accounting Solutions conference in November 2015.

There's been no word from the company yet about why; however, given this recent purchase, it seems more likely this is the reason. After all, a significant portion of SmartVault's business comes from accounting firms. Specifically, SmartVault claims over 6,000 customers, 80 percent of which are accounting professionals.

Reckon does have its eyes firmly set on the accounting and bookkeeping market, with several offerings for each group. Of most interest to accounting firms would be its practice management software, which is not yet in the U.S. market.

I'm certain there will be more to share on this developing story, in fact if you happen to have your own insights, opinions, or facts on the matter, do feel free to add. Overall though, it doesn't seem as if there's a downside for SmartVault users ... businesses and firms alike.

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Adam Blitz
By Adam Blitz
Jan 15th 2016 11:40 EST

So what does this all mean for the US market? Not much, Smartvault is heavily relied upon as a solution for bookkeepers utilizing QB and QBO in the US and will continue to be used in the same fashion. Reckon will adopt the Smartvault platform and create the appropriate connections to their system in Australia. Once the program has been adopted into the Australian market, the company will have to spend the time and money to deliver an accounting product that fits the needs of US based accountants and businesses. All in all...when you attend an accounting conference, smartvault may have a new logo and brand - but other than that, don’t expect to see any expansion or attempted conversions to Reckon One Accounting anytime soon.

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