XRO
14/10/2013 08:45
GENERAL
REL: 0845 HRS Xero Limited
GENERAL: XRO: Xero raises NZ$180m for global growth
MARKET RELEASE
Xero raises NZ$180m for global growth
14 October 2013
Xero Limited (XRO) has raised NZ$180 million of new capital from a range of
US and New Zealand investors including existing shareholders Matrix Capital
Management and the Peter Thiel backed Valar Ventures.
The transactions are priced at NZ$18.15 per share for 9.92 million shares
representing 8% of the shares on issue after the raise.
Xero has built a powerful software platform supporting over 211,000 customers
globally, with the assistance of accountant and bookkeeper partners. Over the
last two months, the company has held partner conferences in Australia, the
US, and the UK and is seeing acceleration in the acceptance and adoption of
its products. Accordingly, the Board decided to raise additional capital to
continue building a world-class team in the US market and support continued
global growth.
US investors account for NZ$147 million of the capital raised. In addition to
Matrix and Valar, the US investors represent some of the most enduring and
well-capitalised asset management firms in the world, all of whom will assist
the company with its strategy and execution in the US market.
Xero earlier this month reported Annualised Monthly Committed Revenue of
NZ$70.6m as at 30 September 2013, up from NZ$38.7m a year earlier, and
expects its operating revenue to exceed NZ$30.3m for the 6 months to 30
September 2013, up 84% over the same period last year. Following the raise
Xero will have over NZ$230m cash on hand.
David E. Goel, Managing Member of Matrix Capital Management, says "Xero is
emerging as the definitive software platform for small business worldwide.
Capturing the power and affordability of cloud-based computing, Xero has
democratised accounting, payroll, and other business software that was once
the privilege of only the largest companies. Having empowered hundreds of
thousands of small and medium-sized businesses in New Zealand, Australia, and
the United Kingdom, Xero is poised to do the same for its 29 million
potential customers in the United States. We are adding to our investment to
help facilitate and accelerate this goal."
Xero CEO Rod Drury says "Xero has had seven years to build the best global
accounting platform. That investment puts us in a strong position as the
cloud market accelerates. The calibre of our investors and our strong cash
position sends a clear signal of our aspirations to serve millions of small
businesses around the world and attract the world's best talent."
Video will be made available related to this announcement on Vimeo and in
Box.
For more information contact:
Rod Drury Ross Jenkins
Xero Chief Executive Xero CFO
[email protected] [email protected]
+64 27 6000 007 +64 21 963 909
About Xero
Xero is beautiful, easy to use online accounting software for small
businesses and their advisors. The company has over 200,000 paying customers
in more than 100 countries around the world. Xero is listed on the NZX and
ASX.
See www.xero.com
About Matrix Capital Management
Matrix Capital Management is an investment advisor registered with the United
States Securities and Exchange Commission and is based in Waltham,
Massachusetts, just outside of Boston. Founded in 1999 by David E. Goel and
Paul J. Ferri, the fund primarily invests in publicly traded equity
securities with a focus on developing a deep and detailed "bottom-up"
analysis of each company in its portfolio. Under Mr. Goel's stewardship as
the Managing Member, Matrix takes the long view of investing. This strategy
involves developing high conviction in companies based on its particularised
research into their fundamentals, and combining that knowledge with a
differentiated understanding of the sectors in which they do business. Over
its fifteen-year investment history, Matrix has specialised in companies that
use technology to disrupt or disintermediate business models, while
cultivating specialised experience in the technology, media/telecom and
consumer sectors.
Within the technology sector, Matrix has been extensively involved in several
sub-segments: software-as-a-service, cloud infrastructure, payments,
e-commerce, social media, mobile data, and streaming video. Over the last two
decades, the Matrix investment team has built relationships with executives
and entrepreneurs in these areas who help Matrix identify and evaluate
potential investment opportunities. Matrix's strategy is to invest in a
concentrated portfolio of attractively-valued companies whose innovative
ideas, strong fundamentals, and visionary management teams position them to
grow over multiple years. Matrix invests a significant amount of time and
resources in developing high conviction in each of its positions, holding to
a deliberate strategy designed to generate strong, durable returns over time.
This above information about Matrix Capital Management does not constitute an
offer to sell or solicitation of an offer to buy any securities.
About Valar Ventures
Valar Ventures is a global venture capital firm backed by Peter Thiel. Based
in San Francisco, Valar invests exclusively in companies outside of the
United States. Valar believes that over the next decade an increasing number
of transformative technology companies will be started outside of the US, and
that the founders of those companies will benefit from having a US partner
that understands their unique challenges and opportunities and can help them
access US networks.
See http://www.valarventures.com/
End CA:00242309 For:XRO Type:GENERAL Time:2013-10-14 08:45:30
