Accounting platform provider Xero
(ASX:XRO) has inked a deal to buy Canadian rival TaxCycle for $75.7 million (C$70 million).
TaxCycle has almost 4,000 tax firms and over 16,000 individual accountants, bookkeepers and tax preparers using its solution in its local market. The company will continue to operate as a standalone brand under founder Cameron Peters’ leadership.
Xero chief executive officer Steve Vamos said that the move "marks an important step in Xero's commitment to extend and enhance its product offering in Canada to meet the nation's unique tax requirements".
"This acquisition will provide us with immediate and long term benefits in Canada and aligns with our strategy to drive cloud accounting adoption globally and deliver the best compliance experience in all our markets."
The deal is expected is scheduled to be complete by year end.
Shares in Xero
(ASX:XRO) are trading 1.2 per cent lower at $141.46.
