WELLINGTON (dpa-AFX) - Xero Limited (XRO.AX), Wednesday announced the acquisition of Melio Limited, an US SMB bill pay platform, as well as its associated entities for an upfront payment of $2.5 billion.
The upfront consideration has been funded funded through a combination of cash, debt, and the issuance of new Xero shares.
With this deal, Xero expects to help customers to better manage their cash flow and streamline their operations on one platform.
Moreover, the combined business is estimated to significantly accelerate US revenue growth, enabling Xero to more than double its fiscal year 2025 group revenue in fiscal year 2028.
However, transaction costs totaling NZ$52 million would be recognised in operating expenses in the first half of the fiscal year 2026.
Xero's stock closed at AUD 157.07, up 1.66 percent on the Australian Securities Exchange.
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