Bill.com (NYSE: BILL), a provider of cloud-based software that simplifies, digitizes, and automates complex back-office financial operations for small and midsize businesses (SMBs), is to acquire Divvy, a Draper, Utah-based spend management company, for approximately $2.5 billion.
Bill.com will acquire Divvy for approximately $625m in cash and $1.875 billion of Bill.com Common Stock, subject to customary adjustments for transactions of this nature. The transaction – approved by the Boards of Directors of both Divvy and Bill.com – is expected to close by the end of Bill.com’s first fiscal quarter ending September 30, 2021, subject to receipt of regulatory approvals and other customary closing conditions.
The acquisition enhances Bill.com’s solution to enable businesses to automatically manage accounts payable, accounts receivable, and corporate card spend all in one place.
The combination will expand the market opportunity for both companies. Bill.com can offer expense management and budgeting software combined with smart corporate cards to its more-than 115,000 customer base and its network of 2.5 million members. Divvy will be able to offer automated payable, receivables, and workflow capabilities to the more-than 7,500 monthly active SMBs that it serves.
Led by Blake Murray, CEO and Co-Founder, Divvy is a leader in spend management that modernizes finance for business by combining expense management software and smart corporate cards into a single platform.
Led by René Lacerte, CEO and Founder, Bill.com is a provider of cloud-based software that simplifies, digitizes, and automates complex, back-office financial operations for small and midsize businesses. Customers use the platform to manage end-to-end financial workflows and to process payments. The AI-enabled, financial software platform creates connections between businesses and their suppliers and clients. It helps manage cash inflows and outflow. The company partners with several of the largest U.S. financial institutions, the majority of the top 100 U.S. accounting firms, and accounting software providers. Bill.com has offices in San Jose, California and Houston, Texas.
FinSMEs
06/05/2021