Xero Limited (ASX:XRO) has acquired online payroll company Monchilla Inc.
The online accounting company says it will pay about $US4.1 million in cash together with 238,490 Xero shares for the Seattle based company.
CEO Rod Drury says the buy will help the company develop a world class payroll experience for the US over the next 12 months.
The company says its ability to quickly integrate complementary technologies into its platform positions it strongly to take a share of this large market.
Xero reported a net loss of $33.3 million in the full year to the end of March 2014.
