Xero Plans To Buy eInvoicing Company Tickstar

Xero Plans To Buy eInvoicing Company Tickstar

Cloud-based accounting software firm Xero Limited plans to purchase Sweden-based eInvoicing technology business Tickstar, according to a Wednesday (March 24) media release.

Tickstar’s tech lets Xero clients in Singapore, New Zealand and Australia use an eInvoicing network that allows for quicker and safer transactions, according to the release.

“The acquisition of Tickstar is an important step in our strategy to help small businesses [digitize] more of their workflows and get paid faster using cloud-based technologies,” Xero Chief Product Officer Anna Curzon said in the announcement.

Xero’s planned acquisition of Tickstar is anticipated to close in Xero’s Q1 Fiscal Year 2022, “subject to satisfaction of closing conditions,” according to the release.

The total amount to be paid for the acquisition of Tickstar will be as much as SEK 150 million (approximately $17 million) to be based on an upfront payment and further earnout payments based on product development and performance, according to the release.

The upfront SEK 60 million (approximately $7 million) payment will be settled half in cash and half in equity in Xero Limited. In addition, the earnout payments will be as much as SEK 90 million (approximately $10 million). As much as half of any earnout payment will be settled in Xero Limited equity and the rest will be paid in cash, per the release.

According to the release, Tickstar, which is based in Stockholm, Sweden, was founded in 2007 and works with clients in many markets throughout the globe.

The news comes after Xero Limited said in early March that it intended to buy employee scheduling company Planday.

Planday simplifies worker scheduling, allowing firms to forecast and manage their labor costs. The company has more than 350,000 employee users across Europe and the United Kingdom.

It is an open platform that links up with Xero, other accounting systems and third-party workforce-related technologies to provide a real-time view into staffing needs and payroll costs as well as essential company performance data points.