Global accounting software provider Xero has confirmed the acquisition of South African cloud-based reporting and analytics platform Syft for up to US$70 million (approximately AU$104 million) as the company moves to enhance its global offering with advanced analytics and insights.
The transaction includes an upfront payment of US$40 million, with the remainder tied to performance-based earn-outs and employee-restricted shares over the next three years. The acquisition is expected to be finalised during the March quarter of 2024.
Syft, which has over 70 employees primarily based in South Africa, will see its team transition to Xero. The cloud-based analytics platform is widely used by accountants and small businesses across more than 80 countries, many of which overlap with Xero's primary markets like Australia, the UK, and the US.
Xero has expressed plans to gradually integrate Syft’s functionality into its broader suite of tools, aiming to enhance its reporting and analytics offerings globally.
Xero also noted that the integration costs associated with the deal are expected to have minimal impact on its financial performance for the 2024-25 fiscal year.