XRO
06/11/2014 09:48
ASSET
REL: 0948 HRS Xero Limited
ASSET: XRO: Xero acquisition of Monchilla accelerates payroll expansion
Xero acquisition of Monchilla accelerates payroll expansion in the U.S.
Xero Limited (XRO) announces that it has acquired Seattle-based online
payroll company, Monchilla Inc. The company's payroll expertise and
technology will enable Xero to rapidly accelerate the extension of its
payroll offering across the U.S.
"We were really impressed by the Monchilla team and how they have approached
filing and payment of payroll taxes in the U.S. Combining this capability
with the work our own team are doing will allow us to develop a world-class
payroll experience for the U.S. over the next 12 months," says Xero CEO Rod
Drury.
Integrating Monchilla with Xero provides improved business-to-government
connectivity, and the opportunity to deliver electronic filing and payments
of payroll taxes, with calculation support, across the U.S. in 2015.
"We're thrilled to join the Xero team and work together to deliver a
world-class, online payroll solution for small businesses in the U.S. market"
says Monchilla co-founder and CEO, Jack Couch.
Xero purchased Monchilla from founders, Jack Couch and Nanjuan Shi, whose
continued involvement will complement Xero's U.S. product development teams
and support Xero's payroll strategy to drive further growth. The total
purchase price for Monchilla is comprised of US$4,127,688 in cash together
with 238,490 Xero Limited ordinary shares to be issued to the founders at
closing (50% of which are subject to trading restrictions and other terms as
set out in more detail in the Notice of Allotment (NZX) and Appendix 3B (ASX)
filed today).
Monchilla, as an early start-up, has solved the complexity of electronic
payroll state filing and was in the initial stages of launching and building
a customer base. With the acquisition, Xero will continue to support
Monchilla's current customers and will transition them over time to the Xero
platform.
Drury says "Over the last year, with Australia and United Kingdom markets
performing well, we have been focussing on delivering the best business
software for the U.S. market. The cloud accounting market is just beginning
in the U.S. and our proven speed of delivery and the ability to quickly
integrate complementary technologies into our platform positions us strongly
to take a share of this large market as it develops over the coming years."
For more information contact:
Rod Drury Ross Jenkins
Xero CEO Xero CFO
[email protected][email protected]
+64 27 6000 007 +1 415 860 3910
About Xero
Xero is beautiful, easy to use online accounting software for small
businesses and their advisors. The company has over 370,000 paying customers
in more than 100 countries around the world. Xero is listed on the NZX and
ASX.
See www.xero.com
End CA:00257308 For:XRO Type:ASSET Time:2014-11-06 09:48:46
