Latest news with #MelioPayments
News.com.au
26-06-2025
- Business
- News.com.au
Closing Bell: Xero losses undercut tech sector as ASX dips
ASX falls 8.4 points, which was about 0.1% Xero sheds 4.7% on $3.9b acquisition of Melio Payments Info tech sector slumps 2% ASX edges lower on Xero acquisition The ASX 200 has fallen 8.4 points or 0.1% in trade today, after major information technology stock Xero (ASX:XRO) fell 4.7%. The damage came after XRO made a $3.9 billion offer for US-based invoicing and accounting platform Melio Payments in a bid to enter the North American market. The big draw points for the acquisition are integrated payments, expanded revenue streams and accelerated US growth, allowing Xero to expand into payment flows as well as accounting services. Analysts reckon the price is pretty steep at 13.4-times Melio's annual revenue of US$187 million, especially since the company printed a cash flow loss of $US154 million in the previous quarter. That said, they also think there are some synergies at play here, and a real opportunity for Xero to break into the American market. In the meantime, it's cut the legs out from under the Aussie market as the info tech sector slides 2%. The only solid gains today were in health care, with several biotech stocks making moves. Clarity Pharmaceuticals (ASX:CU6) jumped 14%, Botanix Pharmaceuticals (ASX:BOT) 8.6%, and Cogstate (ASX:CGS) and Orthocell (ASX:OCC) added 8.2% each. As for our indices, the ASX All Tech was predictably down 0.96%, with the All Ord Gold not far behind, shedding 0.84%. The Small Ords made an effort, adding 0.46% but the ASX 200 Resources and ASX Banks indices were the only others in the green, adding just 0.08% and 0.05% respectively. ACCC slams Australian Gas Network's renewable gas claims With oil prices stabilising at around US$67.88 a barrel of Brent today, the energy sector is almost dead flat. A Federal Court action from the ACCC against gas distributor Australian Gas Networks certainly isn't helping matters. The ACCC alleges AGN made misleading claims in its 'Love Gas' TV and digital advertising campaign, where the company claimed it would be distributing renewable gas to households within a generation. 'It is not currently possible to distribute renewable gas at scale and at an economically viable price, and throughout 2022 and 2023 it was highly uncertain whether, and if so when, this would be possible,' ACCC chair Gina Cass-Gottlieb said. 'We allege that even though Australian Gas Networks knew the future of renewable gas was uncertain, it made an unqualified representation to consumers that it would distribute renewable gas to households within a generation.' The ACCC is seeking declarations, penalties, costs and other orders. Parent company Australian Gas Infrastructure Group vowed to defend its subsidiary's claims. 'We always strive to provide clear and accurate communications about the role and benefits of natural gas today and renewable gas into the future,' AGIG's statement read. 'For this reason, we are disappointed with the ACCC's decision to take proceedings and will be defending these claims. AGIG will not be making any further comment at this stage." ASX SMALL CAP LEADERS Today's best performing small cap stocks: Security Name Last % Change Volume Market Cap VML Vital Metals Limited 0.003 200% 10668158 $5,895,067 PFM Platformo Ltd 0.085 81% 5000 $4,460,690 LKY Locksleyresources 0.088 52% 22958926 $10,633,333 ALR Altairminerals 0.003 50% 264438 $8,593,488 EEL Enrg Elements Ltd 0.0015 50% 354475 $3,253,779 RCM Rapid Critical 0.003 50% 22383999 $2,831,556 TEG Triangle Energy Ltd 0.003 50% 2942226 $4,178,468 OPL Opyl Limited 0.028 47% 14061855 $4,464,398 SPQ Superior Resources 0.005 43% 5075539 $8,298,440 PV1 Provaris Energy Ltd 0.017 42% 4201927 $8,376,015 LOC Locatetechnologies 0.245 40% 6432545 $40,307,564 SLZ Sultan Resources Ltd 0.007 40% 5173612 $1,157,350 AMS Atomos 0.004 33% 4718113 $3,645,055 BP8 Bph Global Ltd 0.002 33% 105539 $1,576,477 CZN Corazon Ltd 0.002 33% 667996 $1,776,858 VN8 Vonex Limited. 0.024 33% 360256 $13,546,863 WWG Wisewaygroupltd 0.185 32% 140498 $23,429,447 EVR Ev Resources Ltd 0.009 29% 6333485 $13,900,857 DY6 Dy6Metalsltd 0.11 28% 362157 $5,708,107 OLH Oldfields Holdings 0.025 25% 60000 $4,261,183 JAV Javelin Minerals Ltd 0.0025 25% 4377333 $12,252,298 KPO Kalina Power Limited 0.005 25% 2945589 $11,731,983 SHP South Harz Potash 0.0025 25% 3977937 $2,205,457 VRX VRX Silica Ltd 0.086 23% 4347080 $52,311,230 BTE Botalaenergyltd 0.06 22% 58960 $12,797,475 Making news… Vital Metals (ASX:VML) is about to initiate a share consolidation on a 50 to 1 basis after shareholders voted in favour at today's general meeting. That'll reduce the company's issued shares from 5 billion to just under 118 million, in turn bumping its share price up 50-fold. As the company hit 2 cents a share in trade today, that will translate to a $1.00 price tag for VML shares post consolidation. Rapid Critical Metals (ASX:RCM) has its eyes set on the Conrad and Webbs silver projects in New South Wales after securing firm commitments to raise $10.5m in a share placement at $0.024 a share. There's been no modern exploration on either project for a decade, offering an opportunity to expand and upgrade existing resource estimates. RCM will begin with the Webbs project, employing targeted geophysics, drilling and metallurgical studies. Opyl (ASX:OPL) has snapped up two Bitcoin for about $330k as part of a treasury diversification process led by executive Tony G. Tony is chair of SOL Strategies, a CSE-listed Solana-based crypto company with a market cap of CAD$375M. OPL reckons the asset class is gaining momentum and offers high levels of liquidity, as well as opening up opportunities to plug into blockchain-based AI infrastructure. Locksley Resources (ASX:LKY) has officially listed to the OTCBQ under the ticker LKYRF, gaining broader access to North American investors and a deeper capital pool for its flagship Mojave rare earths project VRX Silica (ASX:VRX) has received the green light from the WA Minister for Environment for its environmental protection proposal at the Arrowsmith North silica sand project. Originally knocked back by an appeal from the Conservation Council of WA, the Minister has accepted recommendations to amend conditions addressing vegetation dieback, which VRX is happy to address. ASX SMALL CAP LAGGARDS Today's worst performing small cap stocks: Security Name Last % Change Volume Market Cap AOA Ausmon Resorces 0.001 -50% 515819 $2,622,427 C7A Clara Resources 0.0025 -38% 5508687 $2,353,084 HCD Hydrocarbon Dynamics 0.002 -33% 33333 $3,234,328 PIL Peppermint Inv Ltd 0.002 -33% 137297 $6,903,269 QXR Qx Resources Limited 0.002 -33% 1148011 $3,930,987 WEL Winchester Energy 0.001 -33% 4062051 $2,044,528 TML Timah Resources Ltd 0.024 -31% 10000 $3,106,592 ASP Aspermont Limited 0.005 -29% 1191980 $17,312,314 LU7 Lithium Universe Ltd 0.005 -29% 13733062 $5,501,857 FHS Freehill Mining Ltd. 0.003 -25% 4970168 $13,655,414 HLX Helix Resources 0.0015 -25% 350000 $6,728,387 MGU Magnum Mining & Exp 0.003 -25% 2731100 $4,486,603 MTB Mount Burgess Mining 0.003 -25% 4843886 $1,406,811 RDS Redstone Resources 0.003 -25% 1100000 $4,137,069 BLU Blue Energy Limited 0.005 -23% 2147376 $12,031,328 SPX Spenda Limited 0.0055 -21% 1872752 $32,306,508 ERL Empire Resources 0.004 -20% 100000 $7,419,566 PKO Peako Limited 0.002 -20% 233022 $3,719,355 RDN Raiden Resources Ltd 0.004 -20% 12447509 $17,254,457 TFL Tasfoods Ltd 0.004 -20% 2242057 $2,185,478 TGH Terragen 0.018 -18% 1770327 $11,110,378 NSB Neuroscientific 0.074 -18% 729709 $13,014,438 ALY Alchemy Resource Ltd 0.005 -17% 45000 $7,068,458 BLZ Blaze Minerals Ltd 0.0025 -17% 416000 $4,842,000 DAF Discovery Alaska Ltd 0.01 -17% 48333 $2,810,816 IN CASE YOU MISSED IT Neurizon Therapeutics (ASX:NUZ) has developed a liquid version of its ALS treatment drug with the goal of improving the patient experience as the disease progresses. X2M Connect (ASX:X2M) has scored $1m of water monitoring contracts in South Korea, bringing total contract value in the country to $5.5m. Brightstar Resources (ASX:BTR) reckons it can grow the maiden ore reserve for its Second Fortune and Fish underground mines with more surface and underground drilling, which is due to start imminently. Everest Metals Corporation (ASX:EMC) have confirmed an extensive regional gold trend that highlights the considerable scale of the Revere gold project. Hillgrove Resources (ASX:HGO) has revealed more copper beyond the confines of its Kanmantoo mine resource base, thanks to deep diamond drilling. HyTerra (ASX:HYT) has expanded drilling plans at the Nemaha project, increasing the number of white hydrogen wells from two to three. TRADING HALTS Astron Corporation (ASX:ATR) – work plan application update Percheron Therapeutics (ASX:PER) – pending licensing deal PointsBet Holdings (ASX:PBH) – outcome of scheme meeting hummgroup (ASX:HUM) – potential acquisition offer Xero Limited (ASX:XRO) – corporate transaction and equity raise At Stockhead, we tell it like it is. While Locksley Resources is a Stockhead advertiser, it did not sponsor this article.
Business Recorder
26-06-2025
- Business
- Business Recorder
Australian shares close lower as tech stocks weigh
Australian shares closed lower on Thursday, dragged down by technology stocks, as software giant Xero fell after raising capital at a discount to fund the buyout of Melio Payments. The S&P/ASX 200 index closed 0.1% lower at 8,550.8 points. The benchmark ended flat on Wednesday. Technology stocks slipped 2.1%, closing at its lowest in more than three weeks, led by a 5.3% decline in Xero . Shares of the accounting software maker resumed trading a day after it said it would acquire U.S.-Israeli payments provider Melio Payments for as much as $3 billion. The company raised A$1.85 billion ($1.21 billion) at a 9.4% discounted price of A$176 per share to help fund the deal. 'While the deal will help bolster Xero's credentials as a global software player, questions remain about the price paid, the potential dilution of free cash flow margin and how the loss-making company will be integrated into Xero's business,' said Tony Sycamore, market analyst at IG. Larger peer WiseTech Global fell 0.6%. Australian shares flat as banks offset mining drag; inflation data eyed The industrial sub-index fell 0.4% and real estate stocks lost 0.7%. Heavyweight financial stocks ended flat after scaling fresh record highs for three consecutive sessions. Top lender Commonwealth Bank of Australia closed down 0.4%. Sycamore said that the financial sector is overbought and there is potentially a little bit of cooling. Miners ended up 0.1% as copper prices hit a two-week high, while healthcare stocks rose 0.4%. Local investors are now awaiting May retail sales data due next week. There are concerns around Australia's growth trajectory and the retail sales data may reinforce the case for a rate cut in July and a potential follow-up cut in August, Sycamore said. New Zealand's benchmark S&P/NZX 50 index snapped a six-day losing run to finish 0.2% higher at 12,480.05 points.
Business Recorder
26-06-2025
- Business
- Business Recorder
Tech stocks drag Aussie shares lower as markets assess Xero's Melio deal
Australian shares slipped on Thursday, pulled down by tech stocks as IT major Xero dropped after announcing a deal to acquire U.S.-Israeli payments provider Melio Payments and a discounted share placement to fund it. The S&P/ASX 200 index lost 0.1% to 8,553.30 points by 0104 GMT. The benchmark had ended largely unchanged on Wednesday. Technology stocks on the local bourse dropped 2.7%, led by a 7% decline in accounting software major Xero when it resumed trade on Thursday, a day after announcing it would buy Melio for as much as $3 billion. The company with A$30 billion ($19.57 billion) market capitalisation asked institutional investors for A$1.85 billion to help pay for the purchase, with the placement representing a 9.4% discount to Tuesday's close. Xero went on a trading halt before markets opened on Wednesday, pending the announcement of a 'corporate transaction and an associated equity raising'. The deal was announced soon after. Analysts have given the deal a cautious endorsement. 'Xero's acquisition of Melio… comes with short-term earnings dilution, integration risks and heightened exposure to a competitive and evolving U.S. fintech landscape,' said Mark Gardner, CEO and Head of Equities Advisory at MPC Markets. Australian shares flat as banks offset mining drag; inflation data eyed Jefferies reduced its target price for Xero to A$176.90 from A$194.80, citing that Melio would still be '-12% dilutive to earnings on a per-share basis in FY28'. Bucking the trend, miners gained 0.3% as copper prices rose, supported by a tentative ceasefire between Iran and Israel. BHP and Rio Tinto added 0.4% and 0.2%, respectively. In company news, Australia's securities regulator appointed former central bank deputy governor Guy Debelle to an expert panel to investigate ASX's governance, capability and risk management frameworks. However, the bourse operator's stock rose 0.3%. New Zealand's benchmark S&P/NZX 50 index fell 0.2% to 12,432.41 points.
Sky News AU
26-06-2025
- Business
- Sky News AU
ASX 200 sinks on Thursday after mixed performance across major Wall Street indexes
The ASX 200 is down in the early moments of trading on Thursday following a mixed performance in the US. The index sank about 0.2 per cent after the first 25 minutes of trading with accounting software company Xero down 7.2 per cent amid investor backlash to its $4b bet on American accounting and invoicing platform Melio Payments. Credit Corp Group is down about three per cent while family safety app-owner Life360 and data centre owner DigiCo Infrastructure have both lost about 2.5 per cent. Wall Street was a mixed bag on Wednesday despite the major indexes climbing back to their February highs after the calamity of Donald Trump's "Liberation Day" tariffs. "It almost feels like back to your regularly scheduled bull market," Ryan Detrick, chief market strategist at Carson Group in Omaha said. "We've dealt with the tariffs, we've dealt with the Middle East drama, but stocks continue to defy the odds by moving higher with the realization that the U.S. economy remains quite resilient." Shares in chip-maker Nvidia jumped to a new record high, boosting its market cap to US$3.77 trillion, bumping Apple to reclaim the title of world's most valuable company, after rallying more than 60 per cent since April. The Dow Jones sank 0.3 per cent, the S&P 500 finished flat and the Nasdaq added 0.3 per cent. London's FTSE 250 Index shed 0.1 per cent on Wednesday, Germany's DAX fell 0.6 per cent and the STOXX Europe 600 sank 0.7 per cent. New Zealand's NZX has shed 0.3 per cent while Japan's Nikkei 225 is up 0.6 per cent since trading began on Thursday. -With Reuters
West Australian
25-06-2025
- Business
- West Australian
Accounting software firm Xero buys New York's Melio for $4b in a bid to crack US market
Accounting software firm Xero will buy New York-based Melio Payments for $2.5 billion ($3.9b) in a bid to push deeper into the US market. Announced to the Australian Securities Exchange on Wednesday, the deal marks Xero chief Sukhinder Singh Cassidy's first major acquisition since she stepped into the top job in February 2023. Melio — founded in 2018 — has offices in New York and Tel Aviv, and provides accounting and payments software to small and medium-sized businesses in the food, beverage and construction sector. Melio has about 80,000 customers and processed about $US30b of payments in the 2025 financial year to generate $US153 million in revenue. Meanwhile, Xero provides accounting software for invoicing, payroll and other functions primarily to small business. Headquartered in Wellington, NZ, it also has a presence in Australia, the UK, US, Canada, Singapore and South Africa. In the US, it has 400,000 subscribers compared with one million in the UK and 2.3 million in Australia and New Zealand. The company said the combined business would significantly accelerate US revenue growth and presented an opportunity to more than double its group revenue in the 2028 financial year. Ms Singh Cassidy said it was excited to welcome Melio's world-class team and looked forward to working together to deliver shared goals. 'Adding Melio's world-class team, technology platform, and innovative (accounts payable) solutions to Xero enables a step change in our North America scale,' she said, adding it had the potential to help millions of US small and medium businesses, and their accountants, better manage their cash flow and accounting on one platform. 'Xero and Melio are highly complementary — together they complete the key jobs to be done for US SMBs, extend reach across customer segments, provide both direct and syndicated offerings, and deliver multiple revenue drivers.' Melio co-founder and chief executive Matan Bar said joining Xero was an incredible opportunity for the team to further its mission to reinvent the way businesses paid each other. Xero will fund the deal via a fully underwritten $1.85b institutional placement, $US360m of Xero scrip issued to existing Melio shareholders, a fully underwritten $US400m unsecured revolving credit facility, and $US600m of existing cash on Xero's balance sheet. The deal is expected to complete within six months.
