WELLINGTON, 25 June 2025 — Xero Limited (ASX: XRO) (Xero) today announced it has entered into a binding agreement to acquire 100% of Melio Limited and its associated entities (collectively Melio).

Melio is a leading US SMB bill pay platform that seamlessly integrates Accounting and Payments, offering US SMBs and their advisors easy-to-use accounts payable (A/P) workflows and a wide choice of payment methods.

Acquiring Melio delivers a step change in Xero’s US value proposition and scale, accelerating its 3x3 strategy and global high growth aspirations.

This acquisition solves a critical customer need, uniting Accounting and Payments in one platform for customers.

It’s a powerful strategic fit, aligning with Xero’s 3x3 strategy and it brings Melio's world-class team and platform to Xero.

This will drive compelling value creation for the US business and the group globally.

The upfront consideration will be US$2.5 billion (A$3.9 billion) 1 in cash and Xero scrip.

Additional contingent consideration, deferrals and rollovers is payable to Melio employees of up to US$0.5 billion payable over three years.

The majority is linked to delivering against certain pre-agreed outperformance targets, and the remainder subject to the passage of time, annual business objectives and continued employment