June 25 (Reuters) - Australia-listed Xero ( XROLF ) said

on Wednesday it would buy U.S.-headquartered fintech firm Melio

for an upfront consideration of $2.5 billion.

The cash-and-stock deal would also see Melio receiving

up to $500 million as part of deferrals and rollovers, laid out

over the next three years.

The acquisition would allow Wellington-headquarted Xero ( XROLF )

to integrate accounting and payment solutions on a single

platform.

Melio, which has offices in New York and Tel Aviv,

provides digital bill payment solution for small business.

The deal would be funded through a placement of $1.2

billion, a $400 million unsecured credit facility, among others.