Second MYOB founder invests in Xero

MEDIA RELEASE

Second MYOB founder invests in Xero
10 February 2012

Brad Shofer has joined his MYOB co-founder Craig Winkler as one of Xero’s top 20 shareholders.

Following a $20m private placement last week and the announcement of a Share Purchase Plan (SPP), Xero has facilitated on and off-market trades totaling $5m after being approached by institutions and strategic investors.

Brad Shofer, who had a small investment in Xero, says he jumped at the opportunity to increase his stake.

“Xero has been one of the companies I have watched closely over the past few years. I have used the software myself and been very impressed with it and with the company as a whole and its overall strategy and approach. Xero has executed well on its promises and is uniquely placed with early mover advantage in a space that has the potential to be very lucrative for those who get it right."

After exiting MYOB in 2004, Brad Shofer maintained a keen interest in the development of SME accounting. In recent times he has become involved with IT startups and developed a keen interest in cloud computing.

“When I compare the space today with how it was in my MYOB heyday, I see one important difference relating to international expansion. At MYOB, we attempted to make an impact in the large markets of the US and UK, however the model was not easily scalable and we had limited success. With the advent of the cloud, this goal is now much more achievable and I think this is where the real opportunity lies. I see a bright future for Xero."

Five institutions were also involved in the trades, including the US based Sophrosyne Capital LLC and Matrix Capital Management.

To enable these investors to participate without further dilution, founders Rod Drury (CEO), Hamish Edwards and Alistair Grigg (COO) have agreed to sell a small percentage of their shareholding. There is no intention for the founders to sell down in the foreseeable future.

The shares were transferred at $2.75 - the same price as the strategic placement and the pending SPP.

ENDS

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