Xero to Pay Up to EUR183.5 Million for Workforce Platform Planday

   By Stuart Condie 
 

SYDNEY--Xero Ltd. agreed to acquire Copenhagen-based workforce management platform Planday in a cash-and-shares deal the cloud accounting software firm said will help customers control labor costs.

The Australia-listed firm on Thursday said it would pay up to 183.5 million euros (US$221.9 million) for Planday, comprising an initial EUR155.7 million and an earn-out of up to EUR27.8 million based on development and revenue milestones.

Xero said about 45% of the up-front consideration will be in Xero shares and 55% in cash. Up to 50% of the earn-out payment would be settled in shares.

It said the transaction is expected to be completed in the first quarter of its 2022 fiscal year, which starts April 1, 2021.

The acquisition is expected to contribute approximately three percentage points of additional operating revenue growth in fiscal 2022, although the transaction, integration and operating costs are anticipated to have a modest negative Ebitda impact, it said.

Write to Stuart Condie at [e-mail]

(END) Dow Jones Newswires

March 03, 2021 17:08 ET (22:08 GMT)

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