Global accounting software leader Xero has announced its acquisition of Syft, a South African cloud-based reporting and analytics platform, for $70 million. The deal, expected to close between October and December 2024 pending regulatory approval, will enhance Xero’s financial reporting and analytics capabilities, particularly for small and medium-sized businesses.
Syft, founded in 2016 by Matt Stephanou and Vangelis Kyriazis in Johannesburg, provides businesses with AI-driven financial reporting tools. By 2023, Syft had grown significantly, generating $4.4 million in revenue from a customer base of 75,000 businesses across 80 countries.
SEE ALSO: Zoho Corporation Launches AI-Powered Version of Zoho Analytics
Under the terms of the acquisition, Xero will pay $40 million upfront, with $10 million of that amount in shares. The remaining payment will be in earn-outs and employee-restricted shares, to be distributed over the next three years. Syft’s 70 employees will join the Xero team, further strengthening its reporting capabilities.
Syft’s CEO, Vangelis Kyriazis, expressed enthusiasm about the acquisition: “Having met Xero’s senior leadership team over the past few months, we knew that joining Xero was a natural fit and would advance our shared goal of helping small businesses succeed.”
The acquisition highlights a growing trend of global giants acquiring South African SaaS startups. Earlier in March 2024, US-based payroll provider Deel acquired South African startup PaySpace.
While Syft will continue to operate as a standalone platform, its integration into Xero will boost the company’s reporting and analytics features, benefiting customers across Australia, the UK, the US, and other markets globally.