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Xero, a New Zealand-based provider of cloud-based accounting platforms, has agreed to acquire Syft Analytics, a South African company specialising in data analytics and business intelligence solutions.
The total consideration for the Syft acquisition, including related employee incentive payments, is up to $70m (NZ$113.4m).
This includes an upfront payment of $40m, which comprises approximately $10m in Xero shares, with the remainder to be paid in earnouts and employee restricted stock units (RSUs) over the next three years.
Xero expects this strategic move to bolster its advanced reporting, insights and analytics capabilities for customers in Australia, the UK, the US, and other international markets.
Syft's software is used by bookkeepers, accountants and small businesses across more than 80 countries, aligning with Xero's largest customer bases.
Its tools enable users to review, analyse, and forecast financial outcomes.
The integration of Syft's advanced analytics into Xero is expected to offer enhanced analytics and reporting, including benchmarking capabilities for customers.
Syft's team of more than 70 employees, primarily based in South Africa, will join Xero following the acquisition.
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.”
Planned to be closed close in the third quarter of Xero's FY25, the transaction is subject to customary closing conditions and necessary approvals.
The firm expects the acquisition to have a minimal impact on its financial metrics for the fiscal year 2025, including transaction, integration, and operating costs.
Earlier in 2024, Xero announced a three-year global agreement with Mazars, an international audit, tax and advisory firm.
"Xero to acquire Syft Analytics to boost accounting offering" was originally created and published by The Accountant, a GlobalData owned brand.
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