(XRO -2.61%) Accounting software firm Xero announced they had bought European workforce management business Planday. The software integrates into accounting software to provide businesses with a range of performance metrics and labour needs. Xero have a clear goal to build out their offering past accounting, and this acquisition ticks that box.
It also gives them a better defined footprint into the European market where it had struggled to break into. Xero will pay around 50/50 stock vs cash in the deal, totalling ~€184m. It’s not a company maker, but it is a clever acquisition and shows how XRO will leveraged is large & trusted customer base in the future. Planday has been within Xero’s ecosystem for some time so they know the business well.
MM is bullish XRO despite recent weakness.
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