Xero has moved to boost its accounting software’s reporting and analytics features, announcing plans to acquire South Africa-headquartered Sift Analytics in a deal valued at $US70 million.
The small business accounting software platform provider said that it would integrate the analytics functionality into its software platform “over time”.
SME accountants becoming advisors?
Xero is betting that the acquisition will bring analytical and forecasting improvements to its interactive dashboards. The strategy appears to be aimed at capturing a trend in which small business accountants are increasingly seeking to expand their role to include advisory services.
“Xero has always focused on re-imagining how accounting software can empower small businesses by providing insights to help them and their advisors run their business better,” the company said in a statement on the ASX.
“Syft accelerates this further by offering deeper insights to help both small businesses and accounting and bookkeeping partners to make informed decisions,” it added.
Xero said it would continue to offer Syft as a standalone product after the acquisition.
The transaction
Xero said that the US$70 million transaction would be comprise an upfront payment valued at US$40 million worth of cash and shares. It said it would pay the remainder in the form of earn-outs and employee RSUs over three years.
The software platorm provider said that Syft’s approximately 70 employees would be retained and transferred to Xero.
Xero said it expected to complete the transaction in its third financial quarter of 2025.
Looking for a new CFO
The company is also currently on the hunt for a new finance chief. It has announced that its current CFO, Kirsty Godfrey-Billy, will officially step down on March 31, next year. Ms Godfrey-Billy has been at the company for nine years, including six as CFO.
Xero, said Ms Godfrey-Billy would remain available to the company to assist with any transition arrangements.
