XERO LIMITED — M&A Activity 2024

Sep 16, 2024

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MARKET RELEASE

Xero to acquire Sy� to enhance reporting and insights capability

Aligns with 3x3 strategic priority, will advance Xeroʼs accounting offering globally

WELLINGTON, 17 September 2024 - Xero Limited (ASX: XRO) today announced it is acquiring Sy� Analytics (Sy�), a leading global cloud-based reporting, insights and analytics platform for accountants, bookkeepers and small businesses.

The acquisition will accelerate Xeroʼs insights, advanced reporting and analytics offerings for customers in Australia, the UK, the US and its other markets globally. Xero plans to embed Sy�ʼs functionality within Xero over time, providing customers with more powerful analytics and reporting, and benchmarking capabilities.

Headquartered in Johannesburg, South Africa, Sy�ʼs so�ware is used by accountants and small businesses in over 80 countries, the majority of whom are in Xeroʼs largest markets. Customers use Sy� to review, analyse and forecast financial outcomes — a useful capability in any economic environment. Examples of the reporting dashboards possible with Sy�ʼs advanced analytics capabilities are included below.

Xero CEO Sukhinder Singh Cassidy said: “Xero has always focused on reimagining how accounting so�ware can empower small businesses by providing insights to help them and their advisors run their business better. Sy� accelerates this further by offering deeper insights to help both small businesses and accounting and bookkeeping partners to make informed decisions. Todayʼs announcement supports our strategy to create winning customer solutions by strengthening our accounting offering - one of the three most critical small business jobs.”

Total consideration for the purchase of Sy� and related employee incentive payments will be up to US$70 million, comprising an upfront payment of US$40m (including approximately US$10m in Xero shares) and the balance in earnouts and employee RSUs over three years. Completion of the transaction is expected to occur in Q3 of Xeroʼs FY25 and is subject to satisfaction of customary closing conditions, including necessary approvals. Completion of this transaction including transaction, integration and operating costs are expected to have minimal impact on Xeroʼs financial metrics in FY25 .

Sy�ʼs more than 70 employees, the majority of whom are based in South Africa, will transition to Xero as part of the acquisition. Sy� is an existing, top Xero app partner in the Xero App Store. Xero plans that Sy� will continue to be available as a standalone offering post-acquisition.

Authorised for release to the ASX by Xeroʼs CEO

Xero Limited (XRO) NZ Company no. 1830488 ARBN 160 661 183

Registered Address 19-23 Taranaki St Te Aro

www.xero.com

Wellington 6011 New Zealand

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Contacts

Simon Fitzgerald - Communications Mobile: +61 460 294 680 simon.fitzgerald@xero.com

Nicole Mehalski - Investor Relations Mobile: +61 400 947 145 nicole.mehalski@xero.com

About Xero

Xero is a global small business platform with 4.2 million subscribers. Xeroʼs smart tools help small businesses and their advisors to manage core accounting functions like tax and bank reconciliation, and complete other important small business tasks like payroll and payments. Xeroʼs extensive ecosystem of connected ap ps and connections to banks and other financial institutions provide a range of solutions from within Xeroʼs open platform to help small businesses run their business and manage their finances more efficiently.

Registered Address 19-23 Taranaki St Te Aro

Xero Limited (XRO)

www.xero.com

NZ Company no. 1830488 ARBN 160 661 183

Wellington 6011 New Zealand

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Sy� dashboard example

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Sy� Profit and Loss dashboard example

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Xero Limited (XRO) NZ Company no. 1830488 ARBN 160 661 183

Registered Address www.xero.com 19-23 Taranaki St Te Aro

Wellington 6011 New Zealand

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