Xero
Acquisitions
3
Major Deals Covered
$2.8B
Disclosed Deal Value
Xero's largest disclosed acquisition here is Melio Payments Inc. for $2.5B in 2025. This page covers 3 major deals from 2018 to 2025, each with its price where disclosed and the reason behind it.
| Company | Year | Price | Purpose |
|---|---|---|---|
| Melio Payments Inc. | 2025 | $2.5B | Give Xero a US bill pay and accounts receivable platform to speed up growth in the US. |
| Planday A/S | 2021 | $183.5M | Add workforce scheduling for shift-based businesses. |
| Hubdoc Inc. | 2018 | $70.0M | Add automatic capture of bills and receipts. |
2025
$2.5B
Give Xero a US bill pay and accounts receivable platform to speed up growth in the US.
Melio contributed ~$193 million (NZ$332 million) of revenue in FY26 and lifted Xero's average revenue per customer.
Melio co-founder Matan Bar now runs the combined Xero US and Melio business.
2021
$184M
Add workforce scheduling for shift-based businesses.
Brought staff scheduling and time tracking into Xero's product range, mainly for hospitality and retail customers in Europe and the UK.
Operates as a Xero business connected to Xero payroll.
2018
$70M
Add automatic capture of bills and receipts.
Hubdoc's document capture was folded into Xero subscriptions, reducing manual data entry for bills and receipts.
Included in Xero plans in several markets.
Xero's strategy centres on three jobs for small businesses (accounting, payments and payroll) in three main markets (Australia and New Zealand, the UK and the US). In the US it is combining Xero and Melio under one leadership team, adding online bill payments inside Xero and embedded payroll. It is also building AI features, including its JAX assistant, into the core product.
Xero sells monthly software subscriptions to small businesses, sole traders, and accounting and bookkeeping firms. The core product covers bank reconciliation, invoicing, bills, payroll in several markets and financial reporting, and plans are priced in tiers by market. Most customers reach Xero through accountants and bookkeepers, who adopt it for their practice and move clients onto it. A large app marketplace of third-party integrations extends the core ledger. Payments are a growing second revenue line. Since the Melio acquisition in October 2025, Xero earns transaction revenue from US bill pay and receivables, and Melio contributed ~$193 million (NZ$332 million) in FY26. That helped lift average revenue per customer 23% to NZ$55.44.
In July 2018, Xero acquired Canadian automated receipt-capture and data-extraction company Hubdoc for $70 million in cash and equity, bundling its document extraction directly into core Xero subscriptions.
In March 2021, Xero acquired European workforce management and shift-scheduling platform Planday for an upfront €155.7 million ($183 million USD), expanding into staff management for hospitality and retail clients.
In 2020, Xero acquired cloud invoice financing platform Waddle for up to A$80 million; however, following strategic portfolio reviews, Xero wrote down the asset and sold Waddle in 2023 to refocus purely on core accounting.
Xero acquired Swedish e-invoicing infrastructure provider Tickstar in 2021 to secure direct connections to the global Peppol e-invoicing network, complying with European and Australian government digital invoicing mandates.
Xero acquired US-based cloud inventory management provider Locate Inventory for $14 million in late 2021 to build out native omnichannel inventory and supply chain capabilities for small business merchants.
Management shifted toward disciplined capital allocation, avoiding speculative peripheral roll-ups and focusing on strategic tuck-ins that enhance core accounting, embedded payments, and AI capabilities.
Xero integrates key features natively into its intuitive web interface while sunsetting redundant external brand skins to maintain a cohesive, unified user experience.
Xero relies primarily on organic product innovation and its open App Store ecosystem of 1,000+ developer integrations, using acquisitions selectively to accelerate specific technical roadmaps.
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