The deal adds payments to Xero’s offerings by integrating the solution into its accounting software, enabling both companies to scale and accelerating the Kiwi firm’s expansion into the US.
Australia-listed, New Zealand-headquartered Xero makes approximately 7% of its sales in the US. This is why its mission is to expand in the region and support SMEs and their accountants to better manage cash flow and accounting operations on one easy-to-use platform.
Xero predicts that the buyout would double its 2025 financial sales by 2028. The two companies have a shared commitment to scale in the US and combine Xero’s accounting capabilities with Melio’s accounts payable and receivable solutions.
Shares of Zero were suspended from trading as the USD 19.5 billion market capitalisation company asked institutional investors for USD 1.23 billion to support the purchase of Melio.
Analysts gave a cautious endorsement of the deal. An RBC Capital Markets analyst notes that the deal offers benefits by increasing US exposure through a fast-growing payments company, and that it makes strategic sense in the long term, though the complexities of the deal and its execution will take time to navigate.
A E&P analyst commented that, while the buyout price appears high for the business on its own, it could be justified if the company successfully achieves strategic synergies, particularly through broader distribution.
This initiative follows a few Xero partnerships. In May 2025, the company partnered with Ebury to help businesses scale their operations by driving optimal automation, accuracy, and financial control across international markets, achieving their strategic growth goals. In the same time period, Xero started its collaboration with Atoa to allow UK businesses to optimise how they get paid and minimise fees with Instant Bank Pay.
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