Wednesday, 25 June, 2025

Xero Acquires Melio for $2.5B to Deepen U.S. Small Business Segment

New Zealand-based Xero is acquiring U.S. payments platform Melio for $2.5 billion in cash and equity (up to $3 billion including earn-outs). The deal complements Xero’s accounting software with Melio’s accounts payable/receivable toolkit and expands its U.S. footprint, currently just 7% of sales. The move aims to double revenue by 2028, funded via institutional placement, equity issuance, debt, and cash, signaling a strategic push into SME payments and cash-flow tools.