Xero, the global leader in cloud accounting software, is set to acquire South African-based analytics and reporting platform Syft in a deal valued at $70 million. The acquisition, expected to close between October and December 2024, is still pending regulatory approval. Founded in 2016 by Matt Stephanou and Vangelis Kyriazis, Syft has established itself as a key player in financial reporting for small and medium businesses, leveraging AI-driven tools. The Johannesburg-headquartered company serves 75,000 customers across 80 countries and generated $4.4 million in revenue in 2023. The terms of the deal include an initial payment of $40 million, which will consist of $10 million in Xero shares, with the remainder tied to earn-outs and employee-restricted shares over the next three years. Syft’s 70 employees will also transition to Xero as part of the acquisition. “We’ve worked closely with Xero for the past seven years, and after meeting with their leadership team, it became clear that joining forces was the best way to scale our shared vision of empowering small businesses,” said Vangelis Kyriazis, Syft’s CEO. This acquisition is part of a broader trend of international tech firms snapping up promising South African SaaS startups. Earlier this year, Deel, a US-based payroll giant, acquired South African payroll startup PaySpace. For now, Syft will continue to operate as an independent service, while Xero integrates its capabilities—like advanced analytics and financial reporting—into its global offerings. The move is set to bolster Xero’s reporting tools in key markets, including Australia, the UK, and the US, enhancing its value proposition for small businesses.
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