Xero acquires Melio for up to $3 billion, marking one of Israel’s largest tech exits

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Here’s a structured summary of the information you provided regarding the acquisition of Melio by Xero:

Acquisition Details

  • Acquirer: Xero
  • Target: Melio
  • Deal Value: Up to $3 billion (including earnouts)
  • Upfront Payment: $2.5 billion
  • Additional Payouts: $500 million (performance and time-based over three years)
  • Expected Close Date: Within six months (subject to regulatory approvals)
  • Date of Announcement: Wednesday (specific date not provided)

Company Profiles

  • Xero

    • Type: Publicly traded company
    • Market: Australian Securities Exchange
    • CEO: Sukhinder Singh Cassidy
    • Strategic Focus: U.S. market expansion
  • Melio
    • Founded: 2018
    • Locations: New York and Tel Aviv
    • Services: Accounts payable and receivable solutions for over 80,000 U.S. small businesses
    • Payments Processed: Over $30 billion
    • Annual Revenue: $187 million
    • Co-founders:
    • Matan Bar (CEO)
    • Ilan Atias (CTO)
    • Tomer Barel (President)

Fundraising History

  • Last Fundraise: October 2024
  • Fundraise Amount: $150 million
  • Series: Series E
  • Valuation During Fundraise: Approximately $2 billion

Key Notes

  • Melio’s technology is used by companies such as Fiserv, Capital One, and Shopify.
  • Melio will continue to operate with its team under Xero’s broader strategy.
  • The acquisition aligns with Xero’s goal to integrate accounting and payment solutions for small businesses in the U.S. market.

This summary captures the essential elements of the acquisition and provides an overview of both companies.

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2025-06-25 06:59:16