Global small business platform, Xero, is to acquire Syft, a cloud-based reporting, insights and analytics platform for accountants, bookkeepers and small businesses.
The acquisition will accelerate Xeroʼs insights, advanced reporting and analytics offerings for customers in Australia, the UK, the US and its other markets globally. Xero plans to embed Syftʼs functionality within Xero over time, providing customers with more powerful analytics and reporting, and benchmarking capabilities.
Headquartered in Johannesburg, South Africa, Syftʼs software is used by accountants and small businesses in over 80 countries, the majority of whom are in Xeroʼs largest markets. Customers use Syft to review, analyse and forecast financial outcomes.
Xero CEO Sukhinder Singh Cassidy said: “Xero has always focused on reimagining how accounting software can empower small businesses by providing insights to help them and their advisors run their business better. Syft accelerates this further by offering deeper insights to help both small businesses and accounting and bookkeeping partners to make informed decisions. Today’s announcement supports our strategy to create winning customer solutions by strengthening our accounting offering – one of the three most critical small business jobs.”
Deal valued at up to $70m
Total consideration for the purchase of Syft and related employee incentive payments will be up to $70m, comprising an upfront payment of $40m (including approximately $10m in Xero shares) and the balance in earnouts and employee RSUs over three years. Completion of the transaction is expected to occur in Q3 of Xeroʼs FY25 and is subject to satisfaction of customary closing conditions, including necessary approvals.
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Completion of the transaction including transaction, integration and operating costs are expected to have minimal impact on Xeroʼs financial metrics in FY25.
Syftʼs more than 70 employees, the majority of whom are based in South Africa, will transition to Xero as part of the acquisition. Syft is an existing, top Xero app partner in the Xero App Store. Xero plans that Syft will continue to be available as a standalone offering post-acquisition.
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