Deal Structure: Cash, Equity, and Milestone Bonuses
Xero will fund the $2.5 billion upfront consideration through a mix of cash and equity, with the additional $500 million in contingent compensation earmarked for Melio’s employees over the next three years. These bonus payments hinge on performance metrics, employee retention, and business targets.
Melio’s CEO and co-founder Matan Bar will continue to steer the company, now reporting directly to Singh Cassidy and overseeing the merged U.S. operations.
“Joining Xero lets us expand our impact while integrating deeply with a global accounting powerhouse,” said Bar. “This partnership strengthens our shared purpose to empower U.S. SMBs with a seamless, scalable financial platform.”
Strategic Fit: Xero’s “3×3” Roadmap in Action
The acquisition is a cornerstone of Xero’s “3×3” strategic roadmap: scaling three core offerings — accounting, payroll, and payments — across three global regions: North America, the U.K., and Australia/New Zealand. By adding Melio’s platform and robust partner network — which includes Capital One, Shopify, and Fiserv — Xero expects to triple its North American revenue and dramatically boost transaction-based income streams.
