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 into the U.S. with the country's biggest outbound deal in over a decade.

The Australia-listed accounting-software provider Xero will partly fund the largest acquisition in its 19-year history with a $1.2 billion institutional placement.

New Zealand cloud-based accounting software company Xero Limited (ASX: XRO) has announced that it has entered into a binding agreement to acquire 100% of Israeli fintech company Melio. Xero will make an immediate payment of US$2.