Financial software company Xero (ASX:XRO) has announced plans to drive UK business, which include buying a cloud-based accounting firm, Instafile, for £5.25 million.
The max price will be paid over three years, based on performance targets, with the purchase to be completed by December 2018.
Instafile will link directly to the underlying Xero data, allowing organisations to prepare and file corporate tax returns and statutory accounts.
The deal is part of Xero’s plan to increase UK accountant’s efficiency using cloud accounting tools.
It the first purchase Xero has made since it raised US$300 million in October, via a convertible note issue.
Shares in Xero (ASX:XRO) are trading 1.5 per cent higher at $40.49.