Xero spends $800K in cash, scrip on Wgtn software firm
Xero, the cloud-based accounting software company, has bought Wellington-based developer Spotlight Workpapers for $800,000 in cash and scrip.
Xero will continue to build functionality and scalability of Spotlight, keeping past-owners Richard and Julie Francis on to help development and operation, it said late today. The acquisition comes after a $6 million cash and scrip deal to buy-out Auckland-based firm Max Solutions earlier this year.
Spotlight integrates with Max Solutions' Workflowmax practice managment software. Earlier, consultant and blogger Ben Kepes told NBR Xero would buy another company in the space.
"These acquisitions further strengthen Xero’s hand in the accounting software market, particularly against incumbent suppliers," chief executive Rod Drury says.
"We’ve had clear signals from our accounting partners that we should add Workpapers to our stable."
This evening, Mr Kepes told NBR, "When writing about potential acquisition targets for Xero, a very real hole was evident. This news confirms that analysis."
He added, "I look forward to seeing Xero leverage a more consistent product platform for growth here and overseas."
Last year Xero decided to forego short-term profits for a growth strategy, and has been keen to buy assets, including the two New Zealand firms and Australian payroll company Paycycle.
Xero shares [NZX:XRO] closed up 2.2% to $5.52, having joined the NZX 50 Index last month.
The announcement was made after the market closed.