8 Apr 2009

Software firm Xero to raise $23 million

9:23 pm on 8 April 2009

Accounting software firm Xero plans to raise about $23 million of capital and at the same time secure new shareholders.

Craig Winkler, a founder of Australian accounting software firm MYOB, has subscribed for $18 million of the new shares.

Also taking significant stakes will be Bank of New Zealand, two independent directors of Xero and an institutional investor.

Xero also plans to offer existing shareholders the chance to increase their holding.

Chief executive Rod Drury says the money will be used to fund growth rather than strengthen its balance sheet because it has no bank debt.