Online accounting software provider Xero has taken a stake in Max Solutions, whose flagship product is online job costing application WorkflowMax. In a statement to the NZX announcing the buy, Xero CEO Rod Drury notes that "while Xero could have developed the tax lodgement system itself, this functionality is quite specific to New Zealand and sits closer to the WorkflowMax product. "We’ve decided Xero would be better to focus its resources on its international markets and make this investment in Max Solutions so it can grow its team in New Zealand."
The NZX statement notes: "Xero will invest $200,000 for a 15.9% stake in Max Solutions. The investment is to help Max Solutions fund the development of a tax lodgement system.
"This tax lodgement system forms part of an initiative by Xero to bring together a suite of ‘best of breed’ solutions for accounting practices so they can run their businesses entirely in the Cloud, and no longer have the expense and management of in-house servers. The suite includes other services such as document management, practice management, accounts preparation, eMarketing and website design and content management."