Xero's US$2.5B Acquisition Likely to Fast-Track U.S. Expansion -- Market Talk
Dow Jones
Jun 27, 2025
0148 GMT - Xero's US$2.5 billion acquisition of payments provider Melio should help the accounting-software developer fast-track its U.S. expansion, Morgans analyst Nick Harris says. He tells clients in a note that the acquisition brings product innovation and increases Xero's appeal to potential customers. The additional scale Melio brings should, alongside further sales and marketing investments, move Xero closer to having what Harris calls critical mass in North America. The downside is the dilutive impact of a loss-making business, he adds. Harris maintains an accumulate rating on Xero. Morgans keeps a A$215.00 target price on the stock, which is up 0.2% at A$184.40. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
June 26, 2025 21:48 ET (01:48 GMT)
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