Xero Limited has announced its acquisition of Syft Analytics, a leading cloud-based reporting and analytics platform. The deal, valued at up to US$70 million, is set to accelerate Xero’s advanced reporting and analytics services for its global customer base, particularly in key markets such as Australia, the UK, and the US.

The integration of Syft’s platform into Xero will offer enhanced financial insights, reporting, and benchmarking capabilities for accountants, bookkeepers, and small businesses. Syft’s software, currently used in over 80 countries, provides tools for reviewing, analyzing, and forecasting financial outcomes, offering significant value in various economic conditions.

Sukhinder Singh Cassidy, CEO of Xero, said: “Xero has always focused on reimagining how accounting software can empower small businesses by providing insights to help them and their advisors run their business better. Syft accelerates this further by offering deeper insights to help both small businesses and accounting and bookkeeping partners to make informed decisions. Todayʼs announcement supports our strategy to create winning customer solutions by strengthening our accounting offering – one of the three most critical small business jobs.”

Transaction Details and Market Impact

The acquisition includes an upfront payment of US$40 million, with the remaining balance in earnouts and employee RSUs over three years. Completion is expected by Q3 of Xero’s FY25, pending regulatory approvals. Despite the size of the deal, Xero expects minimal impact on its financial metrics for FY25.

Syft’s team of over 70 employees, most based in South Africa, will transition to Xero following the acquisition. While Syft will be integrated into Xero’s offerings, it will continue to operate as a standalone product.