Bookkeeping platform Xero has announced the acquisition of South African insights and analytics platform Syft Analytics for $US70 million ($A104 million).
Syft Analytics is a cloud-based reporting platform designed to help accountants and small businesses forecast financial outcomes.
Xero provides accounting services for subscribed businesses that include automatic bank feeds, invoice generation and other standard business management tasks.
Xero CEO Sukhinder Singh Cassidy says the New Zealand-based company’s focus is on reimagining how accounting software can empower small businesses to run better, and the acquisition will take that model to another level.
“Syft accelerates this further by offering deeper insights to help both small businesses and accounting and bookkeeping partners to make informed decisions,” she said.
Xero shares were up 1.9 per cent following the news on Tuesday, reaching $147.80 per share - the highest level since 2022.
The Syft purchase will comprise an upfront payment of $US40 million, including $US10 million in Xero shares, with the balance in earnouts and employee stock compensation over three years.
Xero said the acquisition of Syft will accelerate its offerings in markets across the world, including Australia, the US and the UK.
Syft’s more than 70 employees, who are mostly based in Johannesburg, will transition to Xero as part of the acquisition, but Syft is planned to remain as a standalone offering for now.
The purchase is expected to be finalised by the third quarter of Xero’s 2025 financial year.
