Xero announced a deal to acquire small business payments platform Melio for $2.5 billion and fill a gap in its offerings by integrating accounting and bill payments.

Melio, founded in 2018 and headquartered in New York with offices in Tel Aviv, Israel, serves over 80,000 US SMBs and accounting firms.

Xero Ltd. is considering an acquisition of Melio Payments Inc. in a deal that could value it at more than $2.5 billion, according to people familiar with the matter.Xero is working with advisers as it considers a cash-and-stock offer for Melio,