Document Management

Xero has acquired Hubdoc, which makes document collection and management software, for $70 million in cash and Xero equity. The New Zealand-based cloud software company said this week Hubdoc, based in Toronto, Ont., will operate as a stand-alone unit.

Xero has been working with Hubdoc, which was founded in 2011, since 2014. Hubdocs products will continue to be sold to non-Xero customers, but greater integration will be developed between Xero and Hubdoc applications.

Xero is paying $60 million, 35 percent cash and 65 percent stock, based on a trading average for the five days ended July 31. The other $10 million will be made within 18 months and will be based on a five-day trading average at the time stock is issued. The transaction is expected to be completed by September.

Hubdocs will continue to be led by co-founders, co-CEOs Jamie McDonald and Jamie Shulman.