Global accounting software giant Xero has announced its acquisition of Syft Analytics, a South African-based cloud analytics and reporting platform, in a deal valued at up to $70 million. This strategic move aims to bolster Xero’s advanced reporting and analytics capabilities across key markets, including Australia, the UK, and the US.
Founded in 2016 by Eleftherios Kyriazis, Matt Stephanou, and Vangelis Kyriazis, Syft Analytics began its journey from a small office in Johannesburg’s Parktown North. For the first few years, the founders juggled full-time jobs while working to get the startup off the ground. Despite the challenges, the company’s persistence paid off by the end of 2019, when Syft had garnered 200 customers and expanded its team to seven employees.
However, it was the onset of the Covid-19 pandemic that truly propelled Syft into the global spotlight. With remote working and virtual communication becoming the new normal, Syft’s cloud-based analytics software, designed primarily for accountants and small businesses, found a receptive audience in markets as far-reaching as New Zealand and Canada. This pivotal period of growth enabled the company to bootstrap its operations, eventually serving thousands of customers in over 80 countries.
Commenting on the acquisition, Syft CEO Vangelis Kyriazis expressed pride in the company’s achievements, particularly highlighting the resilience and dedication of the Syft team throughout their journey. “Building a SaaS business in South Africa is no easy feat,” Kyriazis remarked, paying tribute to his employees and customers for their unwavering support.
For Xero, the acquisition of Syft comes at a time when the demand for data-driven insights and analytics is becoming increasingly critical for businesses worldwide. With Syft’s integration, Xero aims to provide its customers with enhanced reporting tools to improve decision-making through actionable insights. The deal, which is expected to close by the first quarter of 2025, includes an upfront payment of $40 million, with additional earn-outs and restricted shares for employees extending over the next three years.
Xero’s CEO, Sukhinder Singh Cassidy, emphasized the alignment between the two companies’ visions, stating that Syft’s capabilities would complement Xero’s mission of helping small businesses thrive through smarter, data-backed financial management. “We’re excited to welcome the Syft team and incorporate their expertise to further our global reach,” she said.
Syft’s more than 70 employees, who are predominantly based in South Africa, will transition to Xero as part of the deal. Xero’s senior leadership team expressed confidence that Syft’s integration would enhance its service offerings without significantly impacting the company’s financial performance in 2024–25.
The acquisition also marks a milestone for South Africa’s burgeoning tech scene, with Syft being one of the few local startups to secure a significant international buyout. Kyriazis reflected on the journey from a bootstrapped startup to an acquisition by a global leader, thanking his family for their support during the company’s early, challenging years. “This acquisition is not just a win for us but for the broader South African tech ecosystem, which continues to prove its potential on the global stage,” he said.
As Xero looks to integrate Syft’s platform into its suite of products, the acquisition highlights a growing trend of established tech companies seeking to enhance their capabilities through the purchase of niche, innovative startups. For Syft, this represents the culmination of eight years of hard work and growth, offering a chance to scale even further under the Xero banner.
The acquisition promises to be a significant step forward for both companies, as Syft’s reporting and analytics tools become part of Xero’s offering to its customer base of over three million subscribers worldwide.