Xero has announced its acquisition of Syft Analytics in a deal valued at up to $70 million.
Xero, a global leader in cloud accounting software, has revealed its plans to acquire Syft Analytics, a South African cloud-based reporting and analytics platform across over 80 countries.
The acquisition is to enhance Xero’s advanced reporting capabilities, particularly in its largest markets, including Australia, the UK, and the US.
“Syft accelerates our ability to offer enhanced analytics and reporting for small businesses and their advisors, supporting informed decision-making,” said Xero CEO Sukhinder Singh Cassidy. The integration of Syft’s advanced functionality will provide Xero users with powerful benchmarking tools over time, driving improved business outcomes.
The total purchase consideration will reach up to $70 million, with an upfront payment of $40 million, including approximately $10 million in Xero shares. The remaining amount will be disbursed through earnouts and employee retention incentives over the next three years. While Syft will continue to operate as a standalone offering, its functionality will gradually be embedded within Xero’s ecosystem.
With the transaction expected to finalize by 2025, Syft’s 70 employees, primarily based in South Africa, will join Xero. Despite the acquisition, Xero expects minimal impact on its financial metrics in the coming fiscal year.