Xero, an accounting software provider has recently purchased Tickstar, an e-invoicing infrastructure provider. The price of the acquisition is estimated to reach SEK150 million ($22.8 million).
Tickstar is a consulting and cloud services company based in Sweden. It provides e-invoicing technology and expertise to governments and companies around the world, such as in Australia, New Zealand, and Singapore.
The platform of Tickstar will be used by Xero to assist its e-invoicing capabilities. Besides, it will also support Tickstar’s offering of e-invoicing infrastructure services to its current and new clients via the Galaxy Gateway brand and consultancy services.
Xero said in its statement that e-invoicing is “one of the next big innovations” that can support smaller firms and consultants to optimize their accounting practice and receive payment quicker.
Anna Curzon, Xero’s Chief Product Officer, said, “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,” she added.
Xero has been working together with Tickstar before, and the purchase ensures that the company can continue to have access to e-invoicing networks. On the other hand, Tickstar gains more capital to expand its market and better serve its current clients.
Tickstar will serve as a Xero subsidiary. Xero is also aiming to broaden Tickstar’s development team to grow the platform and add new features.
The purchase price includes a 60 million Krona ($9 million) initial charge, divided into 50 percent in cash and 50 percent in Xero shares. The remaining 90 million Krona ($13.7 million) is dependent on meeting product development and performance goals.
The deal is set to close in the first quarter of Xero’s fiscal year ending March 31, 2022, if all closing requirements are met.
Recently, Xero has been on a buying pace. Xero revealed early this month that it was purchasing Planday, a workforce management platform located in Denmark. The goal is to strengthen its role in the small business industry.
Planday will be bought for €183.5 million, with €155.7 million paid up front and a potential earnout fee worth up to €27.8 million contingent on product growth and sales targets.
Xero also purchased Waddle, an Australian cloud-based invoice lending service, for AU$80 million last August.