Jerusalem, 25 June, 2025 (TPS-IL) — Accounting software giant Xero signed a more than $2.5 billion agreement to acquire Melio, an Israeli fintech firm.

The New Zealand-based Xero said the integration of Melio’s technology and syndication network would expand its reach in the U.S. and accelerate its transition to a combined subscription and transaction-based revenue model.

Melio was founded in June 2018 in Tel Aviv. While the founding team was based in Israel, the company quickly expanded its reach to serve U.S. customers. By May 2019, Melio’s platform launched its U.S. operations, and it subsequently established its headquarters in New York City.

Melio serves more than 80,000 customers and processed over $30 billion in payments in fiscal year 2025.

The acquisition includes $2.5 billion in upfront cash and equity and up to $500 million in additional considerations.

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