Hey SB,
XRO today.
Any analysis you can provide much appreciated.
The trend and market need is there, we just have to execute, and sooner rather than later.
No more unnecessary distractions.
Xero to acquire e-invoicing technology provider Tickstar
Helping small businesses get paid faster using innovative cloud-based technology
WELLINGTON, 24 March 2021 – Xero Limited (ASX:XRO) today announces the acquisition of
Tickstar, an e-invoicing infrastructure business that allows organisations such as Xero and its
customers to connect to a global e-invoicing network.
This acquisition aligns with Xero’s strategic priority to drive the adoption of cloud accounting
around the world. Tickstar’s technology provides Xero customers in Australia, New Zealand
and Singapore with access to a well-established e-invoicing network that enables faster and
more secure transactions.
Established in 2007, Tickstar is based in Stockholm, Sweden and serves customers in a
number of markets around the world. Following the acquisition, Xero will leverage Tickstar’s
technology to support Xero’s e-invoicing functionality. Xero will also support the continued
delivery of Tickstar’s e-invoicing infrastructure services through the Galaxy Gateway brand to
both its existing and new customers, alongside its consulting services.
Total consideration for the purchase of 100% of Tickstar will be up to SEK 150 million,
comprising an upfront payment of SEK 60 million, to be settled 50% in cash and 50% in shares
in Xero Limited, and subsequent earnout payments based on product development and
performance milestones, of up to SEK 90 million. Up to 50% of any earnout payment will be
settled in Xero Limited shares with the remainder being paid in cash. Completion of the
transaction is expected in Q1 of Xero’s financial year ending 31 March 2022 (FY22) and is
subject to satisfaction of closing conditions. Transaction, integration and operating costs are
anticipated to have minimal impact on Xero’s FY22 EBITDA.
Xero’s Chief Product Officer, Anna Curzon, commented: “The acquisition of Tickstar is an
important step in our strategy to help small businesses digitise more of their workflows and
get paid faster using cloud-based technologies. As more governments around the world adopt
e-invoicing, Tickstar’s technology will help our customers comply with existing and future
legislation and realise the many benefits that e-invoicing brings.”
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