Xero Acquires Israeli Fintech Melio for up to USD3 Billion
Global small business platform Xero, headquartered in New Zealand, has acquired Melio, an Israeli-founded fintech company streamlining accounts payable and receivable for U.S. small businesses. The deal marks another milestone for the Israeli fintech sector.
The acquisition is expected to be funded through a mix of cash and equity, with an upfront consideration of USD2.5 billion in cash and equity consideration and up to USD500 million in contingent, deferred and rollover consideration may be payable over the next three years
Co-founder and CEO Matan Bar announced the deal, emphasizing that Melio will continue to operate independently, maintaining its open-platform approach while integrating with Xero’s cloud-based accounting suite. Melio currently processes tens of billions of USD annually.
Wilson Sonsini Goodrich & Rosati and Gornitzky advised Xero on the transaction, together with A&O Shearman and Australia’s Gilbert & Toibin.
Melio received legal counsel from Goldfarb Gross Seligman in Israel and Goodwin Procter LLP in the United States. The acquisition marks another major milestone for Israel’s fintech sector and reinforces its global relevance in business software and financial innovation.
