Business solutions platform Xero announced it will acquire cloud-based reporting and insights analytics platform Syft, already available in the Xero App Store. Headquartered in Johannesburg, South Africa, Syft’s software is used by accountants and small businesses in over 80 countries, the majority of which are in Xero’s largest markets.

Syft is used to create, collaborate and explore financial information from simple reports to integrated forecasts for businesses and accountants. Beyond reports, users can also build interactive dashboards, create KPIs, build forecasts, and manage their cash. Files can also be exported to PDF, Excel, Google Sheets, Word, or shared via live links to reports. Users can also combine unlimited entities, add eliminations, account for acquisitions and disposals, include fractional ownership, and create reports, using support for over 170 currencies. Further, it allows Xero data to be combined with Square, Shopify, Stripe and other sources. They can augment financial reporting with operational and nonfinancial data and bulk upload information via Excel or Google Sheets. The Syft and Xero integration unlocks all the functionality available in Syft, including financial analytics, AI-powered anomaly detection and oversight of connected entities.

Total consideration for the purchase of Syft and related employee incentive payments will be up to $70 million, comprising an upfront payment of $40 million (including approximately $10 million in Xero shares and the balance in earnouts and employee restricted stock units over three years. Completion of the transaction is expected to occur in Q3 of Xero’s fiscal year 2025 and is subject to satisfaction of customary closing conditions, including necessary approvals. Completion of the transaction, including transaction, integration and operating costs are expected to have minimal impact on Xero’s financial metrics in FY 2025.

Following the acquisition, Xero plans for Syft to continue to be available as a standalone offering to small businesses and their accountants and bookkeepers, no matter who their accounting software provider is. Xero will also work to embed Syft’s functionality within Xero over time to provide visualizations, analytics and reporting capabilities for new and existing customers.

“Xero has always focused on reimagining how accounting software can empower small businesses by providing insights to help them and their advisors run their business better. Syft accelerates this further by offering deeper insights to help both small businesses and accounting and bookkeeping partners to make informed decisions,” said Xero CEO Sukhinder Singh Cassidy. “Today’s announcement supports our strategy to create winning customer solutions by strengthening our accounting offering—one of the three most critical small business jobs.”

Syft’s more than 70 employees, the majority of whom are based in South Africa, will transition to Xero as part of the acquisition. Syft is an existing Xero app partner in the Xero App Store. Xero plans for Syft to continue to be available as a standalone offering post-acquisition.