Xero Acquires Hubdoc for $91 Million

The Canadian tech scene keeps chugging along.

The latest high profile move comes from the New Zealand-based Xero as they have announced they are acquiring Hubdoc for $91 million ($70 million USD). The goal is for Xero to use Hubdoc’s IP in an effort to move towards their goal of code-free accounting so that accountants can help small businesses use their data better instead of spending time collecting and cataloging it.

“Bringing Hubdoc into the Xero family will enable us to take the next step in delivering a platform that seamlessly connects small businesses with their financial data and their accountants and bookkeepers,” said Keri Gohman, president for Xero Americas. “This is all about accelerating our ability to streamline the collection and classification of that data so that small businesses and their advisors can answer the big questions, and find lasting success.”

Hubdoc, based in Toronto with over 100 employees, is a cloud bookkeeping solution that echoes Xero’s vision and helps small businesses acquire data and documents form financial institutions then sync it to cloud accounting software. The company will continue to operate as a stand-alone business and be led by founders and co-CEOs Jamie Shulman and Jamie McDonald.

“Over the past four years, Hubdoc has built an industry-changing product, a passionate following of customer advocates and a reputation for authentic, human service,” said Shulman. “What is exciting about this transaction is the opportunity to deeply partner with Xero to rewire the global small business economy.”

“Like Xero, we believe that the underlying foundation of any great company is deep customer and employee focus. Our two north stars at Hubdoc are to create amazing customer experiences that people tell their friends about and amazing professional experiences that employees take with them throughout their careers,” said McDonald. “Xero shares those north stars wholeheartedly, and we can’t wait to join them on this journey.”

The acquisition is a natural move for Xero as it has integrated with Hubdoc since 2014 and now the latter is the leading application on the Xero app marketplace. Hubdoc also won the 2016 Xero App Partner of the Year award as well as the first Xero Partnership Impact award in 2017.

Hubdoc raised $4.85 million USD last year and was also named as one of Canada’s most innovative companies for 2017.