• Xero to acquire cloud accounting platform Melio
• Equity raising comprising institutional placement and share purchase plan
• Acquisition and capital raising to support Xero's growth strategy

Xero Limited (ASX: XRO) has announced the acquisition of Melio Limited and its associated entities (Melio) by way of a merger. The acquisition will be funded through an equity raising comprising an institutional placement of new fully paid ordinary shares in Xero to certain institutional, sophisticated or professional investors, as well as a share purchase plan offer to eligible shareholders in Australia and New Zealand. The placement is fully underwritten, while the share purchase plan is not underwritten. The acquisition of Melio and the associated capital raising are intended to support Xero's growth strategy. Xero has provided detailed information about the transaction, including the rationale, key terms, and potential risks, in the announcement. The company has also outlined the process and timeline for the equity raising. Xero emphasizes that the information in the presentation is of a general nature and does not constitute a prospectus or offer document, and investors should conduct their own independent assessment before making any investment decisions.

Xero has not provided any high-importance, price-sensitive forward-looking financial metrics or other company-specific metrics in the announcement.

Xero has not provided any forward-looking outlook statements in the announcement.