US-based financial services company Fidelity Investments has taken a substantial shareholding in New Zealand accounting software firm Xero.
Fidelity Investments, a multinational corporation and large mutual funds manager, yesterday disclosed it had take a 5.39 percent stake in the company.
Xero founder and chief executive Rod Drury said Fidelity had been quietly investing in Xero over the past year or so, and its interest in the company is an endorsement for the business.
"These guys really understand the US market, (they have) seen what we're doing globally, so it's a strong endorsement of what we're doing," said Mr Drury.
"I think over the last year as people have seen us projecting towards that $US100 million annualised revenue, and going past that a few months ago, we're now showing the small business cloud category is a really strong part of the market."