Xero To Purchase Employee Scheduling Firm Planday

Cloud-based accounting software company Xero Limited said on Thursday (March 4) that it plans to purchase employee scheduling platform Planday, according to an announcement.

Planday, which has over 350,000 employee users throughout the United Kingdom and Europe, streamlines staffer scheduling, letting companies project and control their labor expenses.

The acquisition will assist small companies in saving time and financial resources in addition to handling more and more compliance mandates, support more flexible kinds of work and look after their personnel, according to the announcement.

Xero CEO Steve Vamos said in the announcement that the purchase of Planday “aligns with our purpose to make life better for people in small businesses and their advisors.”

Planday is an open platform that connects with Xero, other accounting software and third-party workforce-related systems to provide a live look into staffing requirements and payroll expenses, in addition to important company performance data points.

If it is connected to an accounting software program like Xero, Planday can offer analysis to a company or an advisor that aids them in modifying staffing levels to match business conditions and manage labor expenses.

The overall possible consideration for the Planday purchase is €183.5 million (approximately $220 million), with a €155.7 million (approximately $186 million) upfront payment and an earnout payment of as much as €27.8 million (approximately $33 million) based on goals.

Planday is based in Copenhagen, Denmark and was established in 2004. Its primary markets encompass France, Germany, the United Kingdom, Sweden, Norway and Denmark.

“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 CEO Christian Brøndum said in the announcement.

In separate news, iwocaPay will be connected with Xero’s platform, which will provide small companies with a Pay Later choice. iwocaPay rolled out in June of last year as an invoice payment product.