In a high-stakes play to accelerate its North American expansion, New Zealand-based Xero Ltd. has inked a blockbuster agreement to acquire New York fintech firm Melio for $2.5 billion, with an additional $500 million in performance-based payouts on the table. The transformative acquisition marks a significant leap in Xero’s ambitions to dominate the financial software ecosystem for small and midsize businesses (SMBs) across the U.S.
A Fintech Fusion Set to Shake the SMB Market
The deal marries Xero’s global accounting platform with Melio’s fast-growing U.S. payment infrastructure, fusing forces to create a unified hub for accounts payable, receivable, and bookkeeping solutions. Melio, launched in 2018, has quickly gained traction, processing over $30 billion in transactions over the past fiscal year, and boasting a customer base of more than 80,000 U.S. users.
“Adding Melio’s world-class team, technology platform, and innovative AP solutions to Xero enables a step change in our North America scale,” said Xero CEO Sukhinder Singh Cassidy, touting the synergy as a boost for millions of U.S. SMBs and their accountants navigating the complex dance of digital cash flow management.
