Goodwin’s M&A team advised Melio, a leading U.S. B2B payments platform, on its definitive agreement to be acquired by Xero Limited (ASX: XRO), a global small business accounting platform. The transaction marks a significant step in Xero's U.S. expansion strategy and supports its broader global ambitions. Under the terms of the agreement, Xero will acquire Melio for upfront consideration of $2.5 billion in a mix of cash and equity consideration. An additional $0.5 billion in contingent, deferred and rollover consideration may be payable over the next three years, subject to achievement of agreed performance targets, continued employment and time-based milestones.
Founded in 2018 and headquartered in New York with offices in Tel Aviv, Israel, Melio serves US SMBs and accounting firms with accounts payable, receivable and cash flow management solutions. Melio's leading platform integrates with and maintains partnerships with financial institutions, allowing businesses to sync payments data and avoid manual entry. Melio also acts as a technology service provider for vertical SaaS platforms and financial institutions including Capital One and Shopify, and distribution partners including Fiserv through a syndication model.
The Goodwin team was led by Lawrence Chu, Daniel Saposnik, Andrew Schipper, Andrew Yu and Jordan Lee, Janet Andolina, Cecily Xi, Kevin V. Lam, Benjamin Horwitz, Tuyet Pham, Cisco Palao-Ricketts, Eric Graffeo, Chris Jones and Bradley Stewart, Andrew Lacy, Paul Jin, Kevin Walsh, Michael Casaburi, Edward Holzwanger, Brendan Lally-McGurl, Stuart Ogg, Cecelia Lockner, and Ximeng (Sammy) Tang.
For more information, please see the official press release.