Share
- Release Date: 23/03/12 16:15
- Summary: GENERAL: XRO: Xero completes practice management acquisition
- Price Sensitive: No
- Download Document 1.84KB
XRO
23/03/2012 14:15
GENERAL
REL: 1415 HRS Xero Limited
GENERAL: XRO: Xero completes practice management acquisition
MARKET RELEASE
Xero completes practice management acquisition
23 March 2012
Online accounting provider Xero (XRO) has completed the recent acquisition of
leading software developer Max Solutions Holdings Ltd with the issuing of
1,261,830 shares valued at $4m to the founders of Max Solutions. Xero
acquired Max Solutions in February for $6m - $2 million in cash and $4
million in Xero shares. The issue price was based on the 20 day VWAP and the
shares will vest over three years.
Max Solutions founders Gavin George and Chris Spence have joined the Xero
team in Auckland at the company's new development and sales office.
Max Solutions primary software product, WorkflowMax, (WFM) is the successful
online job, time and invoice management solution used by more than 1500
businesses in 35 countries.
Since the acquisition, the take-up of the practice management component of
WFM has exceeded expectations - already more than 200 accounting firms in New
Zealand have committed to migrate to the product. The adoption of the WFM
practice management system, which is integrated into Xero's core products,
will accelerate full accounting practice conversions.
"Changing the online accounting product category to include practice
management is a disruptive move in the online accounting space," says Rod
Drury. "The early demand for WFM shows this is a good investment."
In Australia WFM has been received with great interest and Xero expects
take-up among accounting firms to be strong in the lead up to the end of the
financial year on June 30. Plans are also underway to introduce WFM to the UK
and USA.
For more information contact:
Rod Drury
Xero CEO
[email protected]
+64 27 6000 007
End CA:00221098 For:XRO Type:GENERAL Time:2012-03-23 14:15:31
