Accounting software firm Xero looks set to grow with the acquisition of Tickstar, an e-invoicing firm based in Sweden.
Xero states that the buyout will help its customers digitize their workflows and get paid faster using cloud technology.
The acquisition occurs in the same month that the firm also purchased workforce management company, Planday.
Considering Xero? Read our guide to Xero versus QuickBooks
The Xero Acquisition of Tickstar
Tickstar are a Swedish company specializing in e-invoicing, founded in 2007. The firm already worked with Xero prior to the acquisition, providing its invoicing solution. But now, Tickstar will sit under the Xero umbrella as a subsidiary.
The purchase looks set to cost Xero around SEK 150 million ($17.2 million) in total, although this sum depends on targets achieved and product development, with 50% payment in cash, and 50% in shares in Xero limited.
According to a press release, Xero will use Tickstar's existing technology to support its e-invoicing infrastructure services through the Galaxy Gateway, for both new and existing companies, alongside its consulting services.
“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
Xero's Recent Acquisitions
Tickstar is the latest in a long line of acquisitions for Xero, and it shows no sign of slowing down. Earlier in March, it purchased the workforce management company Planday for $217 million.
In August of last year it purchased Australian lending platform, Waddle, for $61 million.
Previous to this its last acquisition was in 2018 (UK-based tax filing solution Instafile, for $7 million). Three recent buyouts in less than a year show signs that Xero is keen to expand its reach and bolster its current position.
Xero's Accounting Software Solution
In our review of Xero, we were impressed with its offering and dubbed it the best choice for online businesses. This is thanks to its integrations with popular online platforms such as Squarespace and Square Online.
It also integrates with the likes of Amazon, Etsy and other ecommerce sites, and boasts impressive mobile apps. We also liked the pricing, which is cheaper than some of the big competitors in the space, like QuickBooks.
Read our guide to the Best Accounting Software for Small Business
The acquisition of Tickstar looks set to only improve Xero's already excellent offering.
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