Accounting software company, Xero, has acquired Waddle the cloud-based lending platform that helps small businesses access capital through invoice financing.
The platform, which was launched in 2014, is designed to enable banks and fintech companies to easily lend to small businesses using their accounting data.
The acquisition is in line with Xero’s desire to grow its small business platform to addresses the financial needs of small businesses. Together with Waddle’s lending platform, it will deliver financing solutions for small businesses using their own invoicing data.
Xero plans to continue to explore how small businesses can access capital beyond invoice financing and the acquisition will enable the company to partner with global lenders, in order to help with other financial requirements. Waddle currently has an ecosystem of lenders and banks across the UK and Australia.
“The acquisition of Waddle is an important step in our strategy to help small businesses better manage cash flow and gain access to working capital,” said Steve Vamos, CEO of Xero.
“Waddle’s lending platform has the potential to enable a wide range of banks, fintechs and other lenders to better support small business financial needs. We’re excited about the benefits Waddle can bring to many of our customers and banking partners.”
All earnout payments will be settled through 50% in ordinary shares in Xero and 50% in cash, with completion of the transaction expected by the end of 2020.
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