Xero Limited has announced plans to acquire Tickstar, an e-invoicing infrastructure business that allows organisations and its customers to “connect to a global e-invoicing network”.
According to the group, the deal aligns with “Xero’s strategic priority to drive the adoption of cloud accounting around the world”.
Established in 2007, Tickstar is based in Stockholm, Sweden and serves customers in a number of markets around the world. Following the acquisition, Xero will “leverage Tickstar’s technology to support Xero’s e-invoicing functionality”.
Total consideration for the purchase of Tickstar will be up to SEK 150m (£127m) comprising an upfront payment of SEK 60m (£50m), to be settled 50% in cash and 50% in shares in Xero Limited.
Subsequent earnout payments based on product development and performance milestones, are expected to reach SEK 90m (£76m).
Completion of the transaction is expected in Q1 of Xero’s financial year ending 31 March 2022 and is subject to satisfaction of closing conditions.
Anna Curzon, chief product officer at Xero, said: “The acquisition of Tickstar is an important step in our strategy to help small businesses digitise more of their workflows and get paid faster using cloud-based technologies.
“As more governments around the world adopt e-invoicing, Tickstar’s technology will help our customers comply with existing and future legislation and realise the many benefits that e-invoicing brings.”