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Be the first with the news that moves the market- Xero (XRO) is set to purchase invoice lending platform, Waddle, for $80 million
- Waddle allows banks and fintech companies to easily lend to small businesses
- The acquisition aligns with Xero’s strategy to grow and address financial needs for the small business platform
- Under the agreement, Xero will make an upfront payment of $31 million, followed by earnout payments of up to $49 million
- The purchase is expected to be completed before the end of the year
- Before the market opens this morning, Xero is sitting at $98.49 per share
Xero (XRO) is set to purchase invoice lending platform, Waddle, for $80 million.
Waddle allows a range of banks and fintech companies to more easily lend to small businesses.
The acquisition aligns with Xero’s strategy to grow and address financial needs for the small business platform. The ASX 200-lister says Waddle’s best-in-class cloud lending platform will offer tailored invoice financing solutions.
To buy the business, Xero will make an upfront payment of $31 million, followed by earnout payments of up to $49 million based on product development and milestones. Earnout payments will be in cash and shares.
Xero CEO Steve Vamos says the purchase of Waddle is an important step in the company’s strategy to help small businesses better manage cash flow.
“Waddle’s lending platform has the potential to enable a wide range of banks, fintechs and other lenders to better support small business financial needs,” he said.
“We’re excited about the benefits Waddle can bring to many of our customers and
banking partners,” he added.
After this acquisition, Xero says it will continue to explore how it can help small business gain access to capital.
The purchase is expected to be completed before the end of the year.
Before the market opens this morning, Xero is sitting at $98.49 per share.
