Xero to acquire Planday for £159 million
The acquisition is Xero's largest purchase yet


Cloud-based accounting software firm Xero has announced the acquisition of workforce management platform Planday for €183.5 million (£158.5 million), considered the biggest deal for the company yet.
The sum includes an upfront payment of €155.7 million (£134.5 million), as well as a subsequent earnout payment estimated at €27.8 million (£24 million), based on product development and revenue milestones. Approximately half of the payment is to be settled in Xero Limited shares, with the remainder being “settled in cash”.
The acquisition is expected to be finalised before the end of the month, and is subject to the satisfaction of closing conditions.
Denmark-based Planday, which is a cloud-based open platform, provides businesses with a real-time view of staffing needs and payroll costs, alongside key business performance metrics. As a mobile app, it lets employers and employees communicate, collaborate on scheduling, track time, and attendance, as well as manage payroll, vacation, absence, and other labour-related compliance needs.
When integrated with accounting solutions such as Xero, it also provides additional insights which facilitate the adjustment of staffing levels to match trading conditions and control labour costs. With the acquisition, Planday is expected to expand its presence into other markets where Xero operates.
Commenting on the announcement, Xero CEO Steve Vamos said that the acquisition “aligns with [Xero’s] purpose to make life better for people in small businesses and their advisors”.
RELATED RESOURCE
Modern networking for the borderless enterprise
Five ways top organisations are optimising networking at the edge
Planday CEO Christian Brøndum said that the company is “beyond excited for this next step in [its] journey”.
Get the ITPro daily newsletter
Sign up today and you will receive a free copy of our Future Focus 2025 report - the leading guidance on AI, cybersecurity and other IT challenges as per 700+ senior executives
“Our mission is to make our customers’ day work, and make life easier for both employers and employees," said Brøndum. "This mission fits perfectly with Xero’s passion for small businesses, for people, for growth and for communities.
"We’re looking forward to working within the Xero family to build a strong launchpad for businesses and employees to manage their time and joint potential,” he added.
The news comes less than a year after Xero announced plans to acquire Waddle, a lending platform that specialises in helping small businesses gain access to capital, for around £44 million.
Having only graduated from City University in 2019, Sabina has already demonstrated her abilities as a keen writer and effective journalist. Currently a content writer for Drapers, Sabina spent a number of years writing for ITPro, specialising in networking and telecommunications, as well as charting the efforts of technology companies to improve their inclusion and diversity strategies, a topic close to her heart.
Sabina has also held a number of editorial roles at Harper's Bazaar, Cube Collective, and HighClouds.
-
What is polymorphic malware?
Explainer Polymorphic malware constantly changes its code to avoid detection, making it a top cybersecurity threat that demands advanced, behavior-based defenses
-
Outgoing Kaseya CEO teases "this is just the beginning" for the company
Opinion We spoke to Fred Voccola who remains a key figurehead at the firm as it enters its next chapter...
-
New MSP Espria launched, in Mode Solutions rebrand
News The new company promises a streamlined service, bolstering its own tech to avoid third-party lease agreements
-
Salesforce's $28bn Slack acquisition: What's next for workplace collaboration?
Analysis The CRM giant looks to rewrite the rules of work while expanding cross-business collaboration
-
Zoom acquires AI translation startup Kites
News Kites' technology will be used to provide Zoom users with real-time, multi-language translation capabilities
-
DocuSign acquires ‘smart agreements’ startup Clause
News The startup’s technology will neatly complement DocuSign’s scale and distribution network, its founder claims
-
Cisco seeks Webex enhancements with Slido acquisition
News Webex users will soon be able to use polls, Q&As and access engagement metrics to gain insights
-
Analysts: Salesforce could use Slack Connect to expand networking ambition
News The reported deal could see the cloud giant build a B2B collaboration network and move beyond sales and marketing
-
VMware ups collaboration game with Socialcast
News In its bid to provide apps to workers anytime, anywhere, VMware acquires Socialcast.