Xero snaps up UK cloud accounting firm for £5.25m

Company News

by Jessica Amir

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Last Updated: 28/02/2020 3:59 PM

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. 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.