Overview

• The agreement includes $2.5 billion upfront in cash and stock plus up to $500 million in additional payments over three years tied to performance and milestone targets.
• Xero will fund the transaction through a $1.2 billion placement and a $400 million unsecured credit facility alongside other financing sources.
• The combined business is projected to more than double Xero’s group revenue by its 2028 fiscal year compared with 2025 levels.
• By integrating Melio’s digital bill-payment solution with Xero’s existing accounting services, the company aims to accelerate US revenue growth across its 4.4 million subscribers.
• Melio co-founder and CEO Matan Bar will lead the merged US operations following the completion of the acquisition.