Adrian Johnson
TLDR:
Business solutions platform Xero announced the acquisition of cloud-based reporting and insights analytics platform Syft, enhancing financial reporting capabilities for small businesses and accountants. The total consideration for the purchase is up to $70 million, with completion expected in Q3 of Xero’s fiscal year 2025. Xero plans to integrate Syft’s functionality within its platform while keeping it available as a standalone offering.
Key Elements:
- Xero to acquire cloud-based reporting and insights analytics platform Syft
- Syft’s software used by accountants and small businesses in over 80 countries
- Enhanced financial reporting capabilities for businesses and accountants
- Total consideration for the purchase of Syft up to $70 million
- Completion of the transaction expected in Q3 of Xero’s fiscal year 2025
- Xero plans to integrate Syft’s functionality within its platform
Business solutions platform Xero has announced its acquisition of cloud-based reporting and insights analytics platform Syft. Headquartered in Johannesburg, South Africa, Syft’s software is currently used by accountants and small businesses in over 80 countries, with the majority of users in Xero’s largest markets. Syft’s platform allows users to create, collaborate, and explore financial information, from simple reports to integrated forecasts.
One of the key features of Syft is the ability for users to build interactive dashboards, create key performance indicators (KPIs), build forecasts, and manage their cash flow effectively. Additionally, users can export files to various formats such as PDF, Excel, Google Sheets, Word, or share via live links. Syft supports over 170 currencies and allows for combining unlimited entities, accounting for acquisitions and disposals, and including nonfinancial data.
Xero plans to integrate Syft’s functionality within its platform over time, providing enhanced visualizations, analytics, and reporting capabilities to both new and existing customers. The total consideration for the purchase of Syft, including employee incentive payments, is up to $70 million. The transaction is expected to be completed in Q3 of Xero’s fiscal year 2025, subject to customary closing conditions.
Following the acquisition, Xero intends to maintain Syft as a standalone offering for small businesses and their accountants, regardless of their accounting software provider. The integration of Syft’s functionality aims to provide deeper insights to help businesses and accounting partners make informed decisions. Xero CEO Sukhinder Singh Cassidy expressed the company’s commitment to empowering small businesses with valuable insights to run their operations more effectively.
With Syft’s team of over 70 employees, the majority based in South Africa, transitioning to Xero, the acquisition signals a strategic move by Xero to enhance its financial reporting capabilities. By integrating Syft’s analytics, AI-powered anomaly detection, and oversight features, Xero aims to strengthen its position as a leading provider of accounting solutions for small businesses worldwide.
