Financial management software developer Reckon Limited (ASX:RKN) has signed an MoU with small business services company Intuit to develop a low-cost version of Reckon software.
In a market update, Reckon announced it has been working with Intuit to investigate the possibilities of modifying subsidiary APS' accounting practice management software for distribution to smaller accounting firms.
But the company stressed that Intuit's commitment to continued investment is “highly contingent upon various development milestones [and] stringent market testing requirements being satisfied.”
As a result, the companies have yet to reach an agreement on any commercial terms.
CEO Clive Rabie said it is the first time the company is considering commercialising APS products using this kind of business model.
Reckon grew its profit 27% in 2010 to $17.2 million.
In May, the company acquired a nearly 5% stake in Melbourne IT for $7.3 million, but said it currently had no intention of raising its holding any further.
RKN shares rose 2.92% during Tuesday's public trading to $2.470.
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.