Online accounting software provider FreeAgent has taken a step towards global expansion with the acquisition of Chicago-based financial forecasting software firm 60mo.
The 60mo team will be incorporated into the new American division FreeAgent Inc, which is planning to launching a US version of the FreeAgent system in the coming months.
The acquisition and US expansion follows an injection of cash into the company from existing UK investors and Lightbank, an influential Chicago-based venture capital fund.
Lightbank partner Paul Lee said that its investment was the first step in bringing the user-friendly online accounting application to the US market.
FreeAgent founder Ed Molyneux said the company would continue to focus on freelancers and very small businesses as it expands. Within the UK, he said, the approach was gaining traction with accounting practices that appreciated the competitive advantages of serving contractor clients with an online accounting service. “For example we recently brought on board a 1,000+ client practice," he said.
FreeAgent already has customers in 80 different countries, including several hundred in the US. Using 60mo’s knowledge and expertise of the US accounting software market will help FreeAgent localise its system for the US market, where it will be taking on the industry’s established giants, Intuit and QuickBooks, as well as New Zealand-based rival Xero.