Xero provided the information in a filing with the New Zealand Stock Exchange. The company described the deal asa "likely successful purchase by institutional and professional investors".

Drury will retain 17.7 million shares after the sale. That represents 12.8 percent of the ownership in Xero, worth about $380 million, based on the same per-share price.

"Personally, the transaction will provide an important foundation for my future plans to pursue a range of philanthropic and social endeavors," Drury said in a prepared statement. He said the sale also stems from strong demand and support from existing and new shareholders. Drury said Xero "remains my absolute day-to0day focus as we have so much opportunity."