Xero Limited Enhances Reporting Capabilities with Syft Acquisition

Highlights:

• Strategic Acquisition: Xero Limited (ASX: XRO) acquires Syft Analytics to enhance its global accounting and reporting capabilities, aligning with its strategic growth plans.
• Financial Details: The acquisition is valued at up to US$70 million, with an upfront payment of US$40 million and the balance in earnouts and employee RSUs over three years.
• Global Expansion: Syft’s integration will offer advanced analytics and reporting to Xero customers in key markets, including Australia, the UK, and the US, while continuing as a standalone product.

Xero Limited (ASX: XRO) has announced the acquisition of Syft Analytics (Syft), a global leader in cloud-based reporting, insights, and analytics for accountants, bookkeepers, and small businesses. At the time of writing, Xero shares are trading at $147.82, reflecting a 2.37% increase with a market capitalization of $22.04 billion.

Strategic Expansion in Reporting and Analytics

This acquisition aligns with Xero's strategic focus on enhancing its global accounting offerings. By integrating Syft’s functionality, Xero aims to provide advanced analytics, reporting, and benchmarking capabilities for its customers in key markets, including Australia, the UK, and the US. The integration will enable users to gain deeper financial insights and enhance decision-making processes.

Global Reach and Financial Impact

Syft, headquartered in Johannesburg, South Africa, serves clients in over 80 countries, with a significant presence in Xero’s largest markets. The platform is renowned for its advanced analytics that allows accountants and small businesses to review, analyze, and forecast financial outcomes, a vital tool in any economic environment.

Financial Details of the Acquisition

The acquisition is valued at up to US$70 million, consisting of an upfront payment of US$40 million (including approximately US$10 million in Xero shares) and the remaining amount in earnouts and employee RSUs over three years. Completion is expected in Q3 of Xero's FY25, with minimal impact on the company's financial metrics. Syft’s 70+ employees will join Xero, with plans to maintain Syft as a standalone offering post-acquisition.

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