Fintech
Xero goes all in
on insights
The acquisition of South Africa’s Syft will enhance reporting capability and advance Xero’s accounting offering globally, writes ARTHUR GOLDSTUCK.
When Xero announced last month that it was acquiring South African cloud-based reporting, insights and analytics platform Syft Analytics, it signalled a new phase in its global ambitions.
As the online accounting form put it, “The acquisition will accelerate Xero’s insights, advanced reporting and analytics offerings for customers in Australia, the UK, the US and its other markets globally.”
South Africa, where Xero has quickly become the biggest name in cloud accounting for small business, will be part of an ongoing roll-out.
Syft is an existing partner in the Xero App Store and will remain available as a standalone offering. As such, it is a powerful signal to partner app developers of the potential that exists in the app store beyond mere customer acquisition.
“Xero plans to embed Syft’s functionality within Xero over time, providing customers with more powerful analytics and reporting, and benchmarking capabilities,” said the company.
While its HQ is in Johannesburg, Syft’s software is used by accountants and small businesses in over 80 countries. It’s main purpose is to review, analyse and forecast financial outcomes. This is a key benefit promised but not yet delivered by AI.
“Xero has always focused on reimagining how accounting software can empower small businesses by providing insights to help them and their advisors run their
business better,” says Xero CEO Sukhinder Singh Cassidy. “Syft accelerates this further by offering deeper insights to help both small businesses and accounting and bookkeeping partners to make informed decisions.”
She said the announcement supported a strategy to create winning customer solutions by strengthening Xero’s accounting offering.
Xero is making an upfront payment for Syft of US$40-million, including approximately US$10-million in Xero shares. It will pay a further US$30-million in earnouts and employee incentive payments over three years.
Syft’s 70-plus employees, mostly based in South Africa, will join Xero as part of the acquisition.
* Arthur Goldstuck is CEO of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on social media on @art2gee.
