New Zealand’s Xero to buy US fintech Melio for $2.5 billion

New Zealand accounting software giant Xero agreed to buy New York payments provider Melio for $2.5 billion, the companies said on Wednesday, accelerating the Kiwi firm’s push in the U.S. market with one of the country’s biggest outbound deals.

The deal fills a gap in Xero’s offer by adding payments to its accounting software while enabling both parties to scale up. Australia-listed, New Zealand-headquartered Xero dominates its home markets but has been trying to grow in the U.S. where it says it makes about 7% of sales.