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- Release Date: 02/02/12 11:30
- Summary: GENERAL: XRO: Xero acquires leading practice management company
- Price Sensitive: No
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XRO
02/02/2012 09:30
GENERAL
REL: 0930 HRS Xero Limited
GENERAL: XRO: Xero acquires leading practice management company
Xero accounting software (XRO) has taken full ownership of leading software
developer Max Solutions Holdings Limited.
In late September 2010 Xero invested $200,000 to take a 15.9% stake in
Auckland based Max Solutions, the company behind the successful online job,
time and invoice management solution WorkflowMax which is used by more than
1000 businesses in 35 countries.
The initial investment was to help Max Solutions fund the development of a
New Zealand tax lodgement system. This now forms part of Xero's Modern
Practice offering - a suite of online solutions accountants can use to run
their practice in the cloud without the need for expensive in-house servers.
Xero's New Zealand Country Manager Leanne Graham says over 3300 accounting
and bookkeeping firms worldwide now use Xero which proves the accountant
channel strategy is working.
"Adding WorkflowMax to our portfolio of products will mean we can offer a
more seamless experience for our accounting partners. Not only does it help
us win the entire practice, it places us in a very strong position against
incumbent providers."
The total cost of the acquisition is $2 million cash and $4 million of Xero
shares. The shares will vest over three years. Max Solutions founders Gavin
George and Chris Spence will become part of the Xero team and will bring with
them all other Max Solutions staff.
"Our team has worked alongside Gavin and Chris for four years and we continue
to be impressed with their ability to innovate and deliver," says Xero CEO
Rod Drury. "They will take a leadership role at our new Auckland premises
where we are creating a new development hub.
"We are incredibly excited about the enormous opportunities this affords both
the WorkflowMax team and product set," says Max Solutions co-founder Gavin
George. "We always envisaged that WorkflowMax would be a truly global
solution, and now with the funding, talent and energy that Xero brings we
have a significant opportunity to achieve our goal."
For more information contact:
Rod Drury Ross Jenkins
Xero CEO Xero CFO
[email protected] [email protected]
+64 27 6000 007 +64 21 963 909
About Max Solutions
Max Solutions was formed in 2007 by business partners Gavin George and Chris
Spence. The primary aim was to build a job management solution to be
delivered across the internet. WorkflowMax was brought to market in early
2008 with resounding success.
End CA:00219108 For:XRO Type:GENERAL Time:2012-02-02 09:30:02
