Xero to Acquire South African Financial Reporting Firm Syft in $70 Million Deal

Xero, the leading accounting software company, has announced plans to acquire South African-based financial reporting platform Syft for $70 million. The deal, which is expected to close by the end of 2024 pending regulatory approval, will strengthen Xero's capabilities in AI-powered financial reporting tools.

Founded in 2016 by Matt Stephanou and Vangelis Kyriazis, Syft has rapidly grown into a key player in the cloud-based financial reporting industry, catering to 75,000 customers across 80 countries. In 2023, the company generated $4.4 million in revenue, reflecting its growing influence among small and medium-sized enterprises.

The acquisition terms include an initial payment of $40 million, with $10 million payable in Xero shares. Further payments in the form of earn-outs and employee-restricted shares will be issued over the next three years. Syft's team of 70 employees will join Xero’s expanding workforce.

Syft CEO Vangelis Kyriazis expressed his excitement about the acquisition, highlighting the strong relationship between the two companies. "Joining Xero feels like a natural progression that will help both our companies better support small businesses," Kyriazis said.

Source: Tapiwa Matthew Mutisi / Innovation Village