|
Friday 22nd October 2010 |
Text too small? |
Xero has tapped PayPal co-founder Peter Thiel for $4 million to help fast-track its expansion in the U.S.
Thiel, who helped set up online payments company PayPal and later sold it to eBay for US$1.5 billion, will buy about 2.7 million shares in Xero in a private placement to help support the company’s expansion into the US, giving him about 3% ownership.
Once the deal is done, he will join Xero’s US Advisory Board. The shares climbed 3.6% to $1.54 in trading today, and are down 8.6% this year.
“With the support of Peter and his team, we believe we are now strongly positioned to enter the US and capitalise on the opportunity that this market represents,” chief executive Rob Drury said.
“Access to their extensive networks will provide a major boost as we take on Quickbooks in the vast US small business market.”
Xero entered the US market last year when it appointed Dell executive Andy Lark to be its first member on the company’s US Advisory Board, and in May last year it won two Webby awards.
In January, Xero entered into an arrangement with American online banking services provider Yodlee to offer its accounting system.
Businesswire.co.nz
No comments yet
Xero’s Drury says $180M capital raise ‘sends strong signal’ to competitors
Xero raises $180M selling shares at premium to Matrix, Thiel, others
Xero shares halted pending outcome of capital raising
Xero adds another 36k customers since March, sees 80 percent lift in 2014 sales, wider loss
Xero tells NZX that 23 percent slump in shares reflects volatility in tightly held register
Xero cracks $2 bln market cap, lifting Drury's paper fortune to $388M
Xero topples Port of Tauranga as highest price local stock on NZX
Xero chair, COO book million-dollar paydays after shares more than triple in past year
Xero posts $14.4 mln FY loss, doubles revenue and paying customers
Xero adds 23k customers since September, expects to double annual sales
