Categories
On June 25, 2025, in Wellington, NZ and New York, USA, the New Zealand-based cloud accounting company Xero announced a deal to purchase the U.S. fintech firm Melio for $2.5 trillion USD, making it one of the largest global deals by a tech firm from New Zealand.
The deal includes an upfront mix of equity and cash. Xero may also pay up to $500 million more based on performance. The addition could raise the total value to three billion dollars. The deal is expected to be completed within six months, subject to regulatory approvals.
Melio launched in 2018 as a business-to-business (B2B) payment platform. Since then, it has allowed small and medium-sized businesses (SMBs) to send payments electronically to their vendors. In particular, businesses can use credit cards or bank transfers—even if the vendor only accepts checks. As a result, Melio has grown rapidly and now processes over 30 billion dollars in payments annually. Furthermore, it currently serves more than 80 thousand companies across the United States.
For Xero to acquire Melio is a smart move to expand its presence within the U.S. The company currently makes just 7.5% of the profits in the United States.
In integrating Melio’s technology into the accounting program, Xero aims to simplify accounting tasks for small companies. The Xero platform will allow billing and accounting as well as payments all as a single system.
Xero President Sukhinder Singh Cassidy called the deal a “game changer” for the company’s U.S. growth plans. “Melio’s modern bill pay platform perfectly complements Xero’s vision to empower SMBs with smarter tools for managing money and cash flow,” she added.
Melio continues to be a part of the U.S. under the Xero brand and will retain its management and staff.
The agreement will allow Xero to face off more directly against U.S. giants like Intuit and bolsters its desire to become a world-class market leader in small-business technology in finance.
Visit or follow us on Facebook to learn more about AtoZTech World!
