The acquisition will provide Xero customers in Australia, New Zealand and Singapore with access to an established e-invoicing network that enables faster and more secure transactions, according to Xero officials.
The company will continue to offer Tickstar's e-invoicing services under the the Galaxy Gateway brand as well as its consulting services
The purchase price will be up to SEK 150 million (approximately $23 million), subject to performance milestones.
Half the price will be paid in cash, the other half in Xero shares.
The transaction is expected to close in the first quarter of 2022.
"The acquisition of Tickstar is an important step in our strategy to help small businesses digitise more of their workflows and get paid faster using cloud-based technologies," said Xero's chief product officer, Anna Curzon.
"As more governments around the world adopt e-invoicing, Tickstar's technology will help our customers comply with existing and future legislation and realise the many benefits that e-invoicing brings."