Xero, the global accounting software giant, will acquire South African cloud-based reporting and analytics platform Syft for $70 million. The deal is projected to close between October and December 2024 pending regulatory approval.
Founded in 2016 by Matt Stephanou and Vangelis Kyriazis, Johannesburg-based Syft’s AI financial reporting platform provides small and medium businesses with access to reporting tools. In 2023, the company reported $4.4 million in revenue from 75,000 customers across 80 countries.
Xero will pay $40 million upfront for the acquisition, including $10 million in shares. The rest—-earn-outs and employee-restricted shares—will be paid over three years. Syft’s 70 employees will also be integrated into Xero.
“We’ve worked closely with Xero’s teams and customers over the past seven years,” said Syft CEO Kyriazis. ”Having met Xero’s senior leadership team over the past few months, we knew that joining Xero was a natural fit and would advance our shared goal of helping small businesses succeed.”
The deal continues the trend of global giants acquiring South African software as a service (SaaS) startups. In March 2024, US-based payroll provider Deel acquired South African payroll startup PaySpace for an undisclosed amount.
Syft will continue to operate as a standalone offering to small businesses. Xero will incorporate Syft’s functionality, which includes visualisations, analytics and reporting capabilities for new and existing customers.
Syft will improve Xero’s insights, advanced reporting, and analytics capabilities in Australia, the UK, the US, and other global markets.
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