Menu
Xero's trading halt on ASX attributed to revenue raising

Xero's trading halt on ASX attributed to revenue raising

MD says company in a far sounder financial position than its competitors in the Australasian market

Following Xero’s recent trading halt on the ASX, the accounting software company has announced AUD$158 (NZ$180) million of new capital.

At the time, Xero revealed to ARN that the trading halt was due to a capital raise related to the firm’s growth strategy, though an amount was not named.

The AUD$158 million of new capital comes from both US and New Zealand investors, as well as existing shareholders Matrix Capital Management and the Peter Thiel backed Valar Ventures.

Xero Australia Managing Director, Chris Ridd, said the additional funding comes as the software copany has $200m in the bank and no debt.

“Xero is in a far sounder financial position than our competitors in the Australasian market,” he said.

“We will continue to build a world class team and invest in our pure cloud accounting software model.”

Following the raise, the transactions are priced at AU$16 (NZ$18.15) per share for 9.92 million shares representing 8 per cent of the shares on issue.

Local customer base

Ridd said Xero’s client base in Australia has grown to 79,100 paying customers, which he said proves that SMBs want an alternative to traditional desktop solutions.

“Our popularity in Australia has given our shareholders confidence that we can replicate the same aggressive growth strategy in the US,” he said.

The news of additional funding comes as Xero begins its October roadshow around the country to meet and greet with new customers.

Patrick Budmar covers consumer and enterprise technology breaking news for IDG Communications. Follow Patrick on Twitter at @patrick_budmar.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags xeroCloudaccountingASXsoftware

Featured

Slideshows

Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Examining the changing job scene in the Kiwi channel

Examining the changing job scene in the Kiwi channel

Typically, the New Year brings new opportunities for personnel within the Kiwi channel. 2017 started no differently, with a host of appointments, departures and reshuffles across vendor, distributor and reseller businesses. As a result, the job scene across New Zealand has changed - here’s a run down of who is working where in the year ahead…

Examining the changing job scene in the Kiwi channel
Show Comments