Cloud accounting software developer Xero Ltd. has acquired inventory management provider Locate Inventory for $19 million.
Xero expects to use Locate’s talent, expertise and inventory-accounting workflows to enhance its inventory management solution, which it plans to launch first in the U.S., and then around the world. Its goal is to help small businesses better track and manage inventory across multiple locations and channels.
“We selected Locate as it has some of the most comprehensive inventory-accounting workflows in the U.S. market,” Xero CEO Steve Vamos said in a statement. “Locate’s talented team has a deep understanding of inventory management and product capability to help us scale our cloud inventory management solution for small business, accountants and bookkeepers. The Locate acquisition supports our strategic priority to grow the small business platform, strengthens our e-commerce offering and supports our growth opportunities in North America and globally as we strive to be the most insightful and trusted platform for small business.”
“We are especially excited for this next stage because we have always seen ourselves and our values reflected by Xero,” said Locate CEO Zack Schiffelbein in a statement. “They’re innovators in their space, forward-thinking, build beautiful products, are customer-driven, and humbly human. Most importantly, Locate’s passion for helping growing companies aligns with Xero’s purpose, to make life better for small businesses, their advisors and communities around the world.”
Of the $19 million deal price, $5 million will take the form of grants of restricted stock units to Locate employees, vesting in three to five years; 20% of the remaining $14 million will be settled in cash, and 80% in shares of Xero.