Acquisitions and partnerships
In July 2011, Xero acquired the Australian online payroll provider Paycycle for a mixture of cash and shares totaling NZ$1.9 million, to integrate the company's products into its services.[47] It acquired Spotlight Workpapers in July 2012 for a mixture of cash and shares totaling $800,000.[48]
In July 2018, Xero formed a partnership with US payroll platform Gusto.[49] In August 2018, it acquired Hubdoc, a data capture application.[50] In November 2018, it acquired cloud-based accounts preparation and tax filing application Instafile for GB£5.25 million.[51]
In August 2020, Xero acquired Waddle, an Australian-based invoice financing startup, for A$80 million. The payment included $31 million in cash and $49 million in earnout payments. Waddle allows small businesses to access loans secured by their accounts receivables.[52][53] In March 2023, Xero announced it was cutting jobs and closing the Waddle app.[54]
In November 2021, it acquired inventory management provider Locate Inventory for US$19 million,[55] and in December 2021, Xero announced it was acquiring Canadian tax software provider, TaxCycle, for CA$75 million.[56]
In November 2022, Xero announced the establishment of a technology base in India in partnership with technology outsourcing company Infosys.[57] The India technology base includes engineering and developer roles.[57]
In April 2024, Xero announced a strategic partnership with workforce management platform Deputy.[58] As part of the agreement, Xero invested US$25 million to take a minority stake in Deputy and announced plans to embed Deputy’s shift work management capabilities into Xero’s payroll platform for Australian customers.[59]
In September 2024, Xero announced the acquisition of cloud-based reporting, insights and analytics platform Syft Analytics for up to US$70 million.[60]
In June 2025, Xero agreed to acquire US company Melio for US$2.5 billion in cash and stock, and up to $500 million in additional payments over three years. Melio co-founder and CEO Matan Bar will lead the US operations of the combined business.[61][62] Xero wants to grow in the U.S. which the company says is about 7% of its sales.[63]
