Payments company Novatti is selling its 19.9 per cent shareholding in accounting software company Reckon and will use the proceeds to repay debt, crystallising a significant loss on its investment in the process. The decision reflects the company’s shift from a growth strategy to one focused on streamlining and simplifying operations, controlling costs and improving margins. Novatti acquired a strategic holding in Reckon in July 2021, paying A$22.5 million for its equity interest. At the time, it said the investment would open up opportunities for cross-selling and “synergies”. Novatti has agreed to sell its holding for $8.9 million - a 60 per cent fall in the value of its investment in a little over two years.  It is possible Novatti is a forced seller. It used the shareholding as collateral in a fund raising and the falling value of the Reckon shares may have breached a condition. In an ASX announcement yesterday, Novatti said its partnership with Reckon would continue, with Novatti offering embedded payments to Reckon customers. It will use the proceeds of the sale to redeem $10.5 million of corporate bonds, which were issued in August last year. Novatti has received the consent of the bond investors to redeem the five-year bonds early. The redemption will reduce the company’s annual interest payments by around $1.1 million.  Novatti made a loss of $26.8 million in the 2022/23 financial year, following a loss of $16.6 million in 2021/22. Cash flow was just $1.4 million.