Xero announces acquisition of Hubdoc

Company News

by Anna Napoli

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

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.