Xero (ASX:XRO) has today announced the acquisition of data capture software company, Hubdoc.
The cloud based software accounting company will pay the acquisition price for Hubdoc in two stages, initially US$60 million consisting of 35 per cent cash and 65 per cent in Xero equity.
A second tranche of US$10 million in equity will be issued to Hubdocs shareholders in 18 months.
The transaction is projected to be completed this month and is expected to reduce Xero’s EBITDA in Financial Year 19 by about NZ $7 million.
Hubdoc is a Canadian based company that currently serves customers in the US, Canada, UK and Australia.
Shares in Xero (ASX:XRO) closed 2.57 per cent lower to $42.80 yesterday