Xero, a cloud-based accounting software platform, has announced the acquisition of Planday, a workforce management software solution provider, for up to £159.3m.
Although the deal entails Planday becoming a Xero subsidiary, the two businesses will continue to operate their ecosystems and partnerships freely.
The two group’s are already partially integrated through an app marketplace in the UK, as well as other accounting solutions and third-party workforce-related apps.
Steve Vamos, CEO at New Zealand-based Xero, said: “The acquisition of Planday aligns with our purpose to make life better for people in small businesses and their advisors.
“Planday’s workforce management platform helps small businesses to respond to the rapidly changing nature of work. Planday also addresses the growing need for flexibility and rising compliance demands within the workplace.”
By combining with Xero, the employee scheduling software provider, which has over 350,000 employee users across Europe and the UK, will be able to deliver real-time labour costs data, allowing businesses to adjust staffing levels as trading fluctuates.
Christian Brøndum, CEO at Planday, said: “We are thrilled that a company with values and a culture so aligned to our own — and a similar background — has invited us on a journey to improve our offerings.
“As small business plays a big part in the reemergence of the economy after a difficult economic period, both Planday and Xero want to make life better for customers, so the benefits have the potential to extend well beyond small business to their families and communities.”
