Xero, a leading global provider of accounting software, has announced plans to acquire Syft, a South African cloud-based reporting and analytics platform, for $70 million. The deal is set to finalise between October and December 2024, pending regulatory approvals.
Founded in 2016 by Matt Stephanou and Vangelis Kyriazis, Syft provides AI-driven financial reporting tools to small and medium-sized businesses (SMBs). The Johannesburg-based startup has grown rapidly, boasting $4.4 million in revenue in 2023 from 75,000 customers spread across 80 countries.
Xero’s acquisition involves an upfront payment of $40 million, which includes $10 million in shares. The remaining $30 million will be paid through earn-outs and employee-restricted shares over the next three years. Syft’s 70 employees will be fully integrated into Xero’s operations as part of the acquisition.
“We’ve collaborated with Xero for the past seven years and are excited to join forces,” said Syft CEO Vangelis Kyriazis. “This acquisition will help us expand our shared goal of empowering small businesses worldwide.”
This acquisition continues the trend of global companies acquiring South African Software as a Service (SaaS) firms. Earlier in 2024, US-based payroll provider Deel acquired South Africa’s PaySpace, a payroll startup, for an undisclosed amount.
Syft will continue operating independently while enhancing Xero’s existing offerings, particularly in advanced analytics, visual reporting, and insights for SMBs across major markets such as Australia, the UK, and the US.
