Latest news with #MelioPayments
West Australian
7 hours ago
- 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.
Straits Times
12 hours ago
- Business
- Straits Times
New Zealand fintech Xero to buy Melio Payments in US$2.5 billion deal
Xero has agreed to buy Melio Payments for US$2.5 billion in the New Zealand-based company's biggest ever acquisition. The cash and stock deal for Melio includes as much as US$500 million (S$640 million) in additional performance and other payments over three years, according to a statement confirming an earlier report by Bloomberg News. The combined business is expected to accelerate US revenue growth, possibly more than doubling Xero's group revenue by its 2028 fiscal year, it said in the statement on the morning of June 25 in New Zealand. 'Xero and Melio are highly complementary,' Xero chief executive Sukhinder Singh Cassidy said in the statement. 'We will continue to invest in Melio's Payments product and leverage Xero's go-to-market expertise to accelerate growth in Melio and Xero in the US.' Melio co-founder and CEO Matan Bar will be responsible for the combined US business. 'Having worked closely with the Xero team,' Mr Bar said, 'we're excited by our shared purpose to scale in the US and combine Xero's accounting capabilities with Melio's accounts payable and receivable solutions to create comprehensive product offerings for our collective, valued customer base.' With offices in New York, Tel Aviv and Denver, Melio provides payments software to small businesses in the food, beverage and construction industries, according to its website. Melio's valuation hit US$4 billion in 2021 after it raised US$250 million in an investment round co-led by Thrive Capital and General Catalyst. In 2024, though, it was valued at US$2 billion in a US$150 million funding round led by Fiserv, according to a statement. Xero provides accounting software for invoicing, payroll and other functions, primarily to small businesses. In addition to a home office in Wellington, New Zealand, Xero has a head office in Melbourne, Australia, plus other locations in both countries as well as offices in Britain, the US, Canada, Singapore and South Africa, according to the company's website. The company's shares have gained 15 per cent in 2025, giving the company a market value of about A$30 billion (S$24.9 billion). Xero is New Zealand's biggest company by market value, according to data compiled by Bloomberg. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Bloomberg
12 hours ago
- Business
- Bloomberg
Xero Agrees to Buy Melio in Deal Valued at $2.5 Billion
Hi there, it's Keira here in Sydney. Here's all the news you need to know to start your Wednesday morning... Today's must-reads: • Xero buys Melio • Virgin Australia CEO • Calls to ban YouTube for kids New Zealand-based software company Xero has agreed to buy Melio Payments for $2.5 billion in an effort to accelerate US revenue growth, confirming an earlier report by Bloomberg News. Virgin Australia Chief Executive Officer Dave Emerson brushed away concerns the Middle East conflict will disrupt demand for travel. Emerson's comments came as the Bain Capital-backed carrier finally completed a A$685 million initial public offering.
AU Financial Review
13 hours ago
- Business
- AU Financial Review
Xero makes $4b play to break into lucrative international markets
Xero is buying New York-based accounting platform Melio Payments for $US2.5 billion ($3.9 billion) in a deal the software business hopes will help it break into the United States. Founded in 2018, Melio makes accounting and payments software for small and medium businesses and their bookkeepers.
Bloomberg
16 hours ago
- Business
- Bloomberg
New Zealand Fintech Xero Explores $2.5 Billion Deal for Melio
Xero Ltd. is considering an acquisition of Melio Payments Inc. in a deal that could value it at more than $2.5 billion, according to people familiar with the matter. Xero is working with advisers as it considers a cash-and-stock offer for Melio, the people said, asking not to be identified because the information is private. Discussions might proceed quickly and a transaction could be announced within days, the people said.
