Investing.com - Financial Markets Worldwide

New Zealand fintech Xero to buy US-based Melio for $2.5 bln

AuthorAmbar Warrick
Published 06/24/2025, 07:40 PM
© Reuters.
XRO
-1.46%

Investing.com-- Xero Ltd (ASX:XRO) said on Wednesday it had entered a binding agreement to buy U.S.-based payments processor Melio Ltd for an initial cash and equity consideration of $2.5 billion. 

Xero could pay Melio an additional $500 million based on certain performance targets and after a set time period, the company said in a statement. 

The acquisition will “significantly boost” Xero’s top line, the company said, with the combined business to more than double its revenue by 2028 from 2025. 

The deal is also aimed at boosting Xero’s presence in the U.S., which is a major growth market for the firm.

Xero develops cloud-based accounting software for small businesses, with the Melio acquisition expected to be largely complementary to the New Zealand-based, Australia-listed company. 

Xero will fund the acquisition through a $1.2 billion private placement and a $400 million credit facility. 

 

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.