Xero to acquire workforce management platform Planday for €156m
Xero Limited today announces the acquisition of Planday, a workforce management platform with more than 350,000 employee users across Europe and the UK that simplifies employee scheduling, allowing businesses to forecast and manage their labour costs.
Aligned with Xero’s strategic priority to grow the small business platform, the acquisition of Planday will help more small businesses save time, save money, deal with increasing compliance requirements, support more flexible forms of work, and look after their people.
Planday is an open platform that integrates with Xero, other accounting solutions and third-party workforce-related apps, to deliver a real-time view of staffing needs and payroll costs, alongside key business performance metrics. When combined with an accounting solution, such as Xero, Planday is able to provide insights to a business or its advisor that help them to adjust staffing levels to match trading conditions and control labour costs, which are often an employer’s largest expense.
Following the acquisition, Planday will expand its presence into other markets where Xero operates, supporting Xero’s long-term growth plans.
With an upfront payment of €155.7m and a subsequent earnout payment of up to €27.8m based on product development and revenue milestones, the total potential consideration for the acquisition of Planday is €183.5m.
Completion of the transaction is expected in Q1 of Xero’s financial year ending 31 March 2022 (FY22) and is subject to the satisfaction of closing conditions.
Xero CEO Steve Vamos commented: “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.”
Planday CEO Christian Brøndum commented: “We are beyond excited for this next step in Planday’s journey. Our mission is to make our customers’ day work, and make life easier for both employers and employees. 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.”
Planday was founded in 2004 and is headquartered in Copenhagen, Denmark. The primary markets in which Planday currently operates are Denmark, Norway, Sweden, the UK, Germany and France.