Xero (ASX:XRO) share price higher after announcing new acquisition

The Xero Limited (ASX:XRO) share price is on the move on Wednesday after announcing another new acquisition this morning…
The post Xero (ASX:XRO) share price higher after announcing new acquisition appeared first on The Motley Fool Australia. –

The last piece of the jigsaw being fitted, indicating good news for a share price on merger or acquisition

The Xero Limited (ASX: XRO) share price is edging higher on Wednesday morning.

At the time of writing, the cloud-based business and accounting platform provider’s shares are up 1% to $122.40.

This latest gain means the Xero share price is now up an impressive 25% over the last six months.

Why is the Xero share price edging higher today?

Investors have been buying Xero shares this morning after it announced its second acquisition of the year.

According to the release, the company has acquired e-invoicing infrastructure business Tickstar for up to SEK 150 million (~A$22.9 million).

This comprises an upfront payment of SEK 60 million (A$9.15 million) and earnout payments of up to SEK 90 million (A$13.7 million). The latter will be based on product development and performance milestones. Both will be settled 50% in cash and 50% in Xero shares.

Completion of the transaction is expected in the first quarter of FY 2022 (before 30 June 2021) and remains subject to satisfaction of closing conditions.

The transaction, integration, and operating costs are anticipated to have minimal impact on Xero’s FY 2022 operating earnings.

What is Tickstar?

Tickstar is a Sweden-based e-invoicing infrastructure business that allows organisations such as Xero and its customers to connect to a global e-invoicing network. This enables faster and more secure transactions.

Management notes that the acquisition aligns with Xero’s strategic priority to drive the adoption of cloud accounting around the world.

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.”

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Xero (ASX:XRO) share price higher after announcing new acquisition appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!