How many Xero’s are there in $110 million dollars?
The cloud accounting specialist reported Tuesday that Accel Partners will invest NZ$132.9 million by way of a share purchase valued at NZ$20 per share. Along with Matrix Capital Management, which will invest NZ$14.3 million, the investment will bring Xero’s total cash to NZ$285 million, or $213 million USD.
Xero CEO Rod Drury said that the investment was “a testament to our success and our potential to become the small business SaaS platform of choice for entrepreneurs around the globe.”
Accel partner Andrew Braccia pointed to Xero’s plans for expansion in the United States as one of the reasons his company was enthusiastic about Xero. “Accel always looks for enduring technologies with global reach and we see the need and opportunity for millions of small businesses to grow on Xero’s platform.”
The New Zealand-based company plans to use the funds to support growth in both the United States and the United Kingdom. Xero also announced a major personnel change on Tuesday, appointing Russell Fujioka to U.S. President.
Above: David Pollock, Head of U.S. Partnerships, presenting at FinDEVr San Francisco 2014
The investments for both Accel Partners and Matrix Capital are expected to close in mid-March. With its investment, Accel will join Matrix in being able to participate in future share placements.
Xero has enjoyed a great deal of positive press in recent months. The company was highlighted as “our best purchase of 2014” by Business Betties, named to KPMG’s 50 Best Fintech Innovators, and reached a milestone of 400,000 paying customers last December.
Xero participated in the inaugural FinDEVr 2014 event in San Francisco.