Accounting software vendor Xero has acquired e-invoicing infrastructure company Tickstar for up to $22.8 million (150 million Swedish Krona).
Based in Sweden, Tickstar is a consulting and cloud services provider that specialises in e-invoicing infrastructure and expertise to governments and businesses globally.
Xero is an existing Tickstar customer, and the acquisition means the company keeps continued access to e-invoicing networks while Tickstar gets additional resources to grow its business and service its current customers.
Tickstar will operate as a Xero subsidiary, with Xero planning to expand Tickstar’s development team to scale the platform and develop additional product features.
“The acquisition of Tickstar is an important step in our strategy to help small businesses digitise more of their workflows and get paid faster using cloud-based technologies,” Xero chief product officer Anna Curzon said.
“As more governments around the world adopt e-invoicing, Tickstar’s technology will help our customers comply with existing and future legislation and realise the many benefits that e-invoicing brings.”
In its announcement, Xero said e-invoicing is "one of the next big innovations" that will help small businesses and advisors streamline their accounting work and get paid faster.
Australia introduced its own mandatory e-invoicing regime, Single Touch Payroll, which was introduced in 2017 and went into effect a year later.
The acquisition price comprises of an upfront payment of 60 million Krona ($9 million), with the remaining 90 million Krona ($13.7 million) payable based on product development and
The acquisition is expected to complete in Q1 of Xero’s financial year ending 31 March 2022, subject to the satisfaction of closing conditions.