New Zealand’s Xero acquires workforce management platform Planday

Xero, a cloud-based accounting software platform based in New Zealand, announced it has acquired workforce management platform Planday.

Photo credit: Xero

The total potential consideration for the deal is S$294.8 million (US$220.4 million), according to a statement. Around 45% of the upfront consideration will be payable in shares in Xero, with the remaining to be settled in cash.

Following the acquisition, Xero will help more small businesses deal with compliance requirements and support flexible forms of work. The transaction is expected to be completed within the first quarter of 2022.

Founded in 2004, Planday is an open platform that can integrate with accounting solutions and third-party workforce-related apps to deliver a real-time view of staffing needs, payroll costs, and business performance metrics.

The Copenhagen-based startup operates in Denmark, Norway, Sweden, the UK, Germany, and France. Moving forward, it will expand its presence into other markets where Xero operates.

Xero helps small business owners and their advisors have access to real-time financial data, and claims to have 2.45 million subscribers globally. It offers an ecosystem of over 800 third-party apps and 200 connections to banks and other financial partners.

The company is up against rivals such as QuickBooks, which was developed by Intuit, and FreshBooks, which received a strategic investment from JPMorgan Chase in 2019.

Currency converted from Singapore dollar to US dollar: US$1 = S$1.34.

Correction (March 5, 3:25 pm): This article originally said that Xero was based in Australia.