Xero announced today that it has acquired Toronto’s Hubdoc, a leading data capture solution that helps accountants, bookkeepers, and small businesses to streamline administrative tasks such as financial document collection and data entry.
Xero will pay the acquisition price for Hubdoc in two stages, initially US$60 million consisting of 35% cash and 65% in Xero equity. Xero has arranged new debt funding for the cash component of the acquisition price.
A second tranche of US$10 million in equity will be issued to Hubdoc’s shareholders in 18 months, subject to meeting agreed operational targets and conditions.
Founded in 2011, Hubdoc is headquartered in Toronto, Canada, currently serving customers in the US, Canada, UK and Australia. Hubdoc will continue to operate on a stand-alone basis within Xero, led by co-founders and co-CEOs Jamie McDonald and Jamie Shulman.
Hubdoc has been a Xero ecosystem partner since 2014. Hubdoc automatically collects bank statements, bills, and receipts from more than 700 financial institutions, utilities, telecom providers, and suppliers, delivering streamlined data capture and a seamless integration with accounting solutions such as Xero. This data capture capability is a key element of Xero’s code-free accounting strategy, which enables small businesses and their advisors to focus on growing their businesses.
Hubdoc will continue to be sold separately, and available to non-Xero customers, maintaining its
current business model. Over the longer-term, customers can expect to see a deeper integration
between Hubdoc and the Xero platform, servicing customers globally.
Xero remains fully committed to its open ecosystem strategy and Xero customers will continue to
have access to the full range of more than 700 apps that connect with Xero.