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Investing.com -- New Zealand fintech company Xero Ltd. is exploring a potential acquisition of Melio Payments Inc. that could value the payment platform at more than $2.5 billion.
Xero is currently working with advisers to prepare a cash-and-stock offer for Melio, according to Bloomberg, citing sources familiar with the matter. The discussions are moving at a rapid pace, and an announcement about the transaction might come within days.
Melio Payments previously reached a $4 billion valuation in 2021 after raising $250 million in an investment round that was co-led by Thrive Capital and General Catalyst. The company's valuation later decreased to $2 billion in 2022 when it secured $150 million in a funding round led by Fiserv Inc (NYSE:FI).
The potential deal would represent a major expansion move for Xero, which specializes in cloud-based accounting software for small businesses.
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