Xero has acquired Denmark-based workforce management platform vendor Planday for €155.7 million (A$241.8 million).
The acquisition helps bolster Xero’s small business platform through Planday’s simplified employee scheduling. It also boasts 350,000 users across Europe and the United Kingdom.
Planday’s platform helps deliver a real-time view of staffing needs and payroll
costs, alongside key business performance metrics. It integrates with Xero and other accounting software, as well as third-party workforce-related apps.
When combined with accounting software, Planday provides insights that help adjust staffing levels to match trading conditions and control labour costs.
“The acquisition of Planday aligns with our purpose to make life better for people in small businesses and their advisors,” Xero chief executive Steve Vamos said.
“Planday’s workforce management platform helps small businesses to respond to the rapidly changing nature of work. Planday also addresses the growing need for flexibility and rising compliance demands within the workplace.”
Speaking on the acquisition, Planday CEO Christian Brøndum said, “We are beyond excited for this next step in Planday’s journey. Our mission is to make our customers’ day work, and make life easier for both employers and employees.
“This mission fits perfectly with Xero’s passion for small businesses, for people, for growth and for communities. We’re looking forward to working within the Xero family to build a strong launchpad for businesses and employees to manage their time and joint potential.”
Founded in Denmark in 2004, Planday primarily operates in Denmark, Norway, Sweden, the UK, Germany and France. The company has been a Xero ecosystem partner since 2019.
The €155.7 million is the upfront payment for the acquisition, and comes with a subsequent earnout payment of up to €27.8 million (A$43 million) based on product development and revenue milestones for a combined €183.5 million (A$284 million).
The deal is expected to close in the first quarter of Xero’s financial year ending 31 March 2022 (FY22) and is subject to satisfying closing conditions.