News March 4 2021

Xero to buy workforce management platform Planday in largest acquisition yet

Cloud-based accounting software firm Xero is buying Planday, a workforce management platform that simplifies employee scheduling, allowing businesses to forecast and manage their labour costs.

The total potential consideration for the deal is 183.5 million euros (S$294.7 million), making it the company’s largest acquisition to date.

This amount includes an upfront payment of 155.7 million euros, and a subsequent payment of up to 27.8 million euros based on product development and revenue milestones.

About 45 per cent of the upfront consideration will be payable in Xero shares, while the remainder will be settled in cash. In addition, up to half of the earnout payment will be paid in shares.

Founded in 2004, Planday is headquartered in Copenhagen, Denmark and has more than 350,000 users across Europe and the UK. The primary markets in which it operates are Denmark, Norway, Sweden, the UK, Germany and France.