Bill.com acquires spend management firm Divvy in $2.5bn deal
Bill.com, a provider of cloud-based back-office payment software, is set to acquire Divvy in a stock and cash transaction valued at around $2.5 billion.
The firm is buying Utah-based Divvy for approximately $625 million in cash and $1.875 billion of common stock.
Spend management specialist, Divvy, claims to modernise finance for business by combining expense management software and smart corporate cards into a single platform.
Bill.com says the acquisition supports its mission and enhances its ability to deliver value to a combined customer base.
The firm says its newly expanded solution will enable businesses to “automatically manage accounts payable, accounts receivable, and corporate card spend all in one place”.
“Customers have been asking us to help them with their spend management,” says Bill.com CEO René Lacerte.
“Our expanded platform will provide more automation and real-time information to [small businesses], enabling them to make more informed decisions.
“We have a shared passion for helping [small businesses] succeed and both companies are driving our customers’ digital transformations. Together, we can further empower them to transition quickly and easily.”
The deal is expected to close by the end of Bill.com’s first fiscal quarter ending 30 September 2021. The firm says its combination will expand the market opportunity for both companies.
Bill.com will offer expense management and budgeting software combined with smart corporate cards to its 115,000 strong customer base and network of 2.5 million members.
Divvy will offer automated payable, receivables, and workflow capabilities to the more-than 7,500 monthly active customers that it serves.
“At Divvy, our customers are our true north, and they always have been,” says Blake Murray, Divvy CEO.
“As we listened to our customers, we heard them ask for a comprehensive payments platform so that they don’t have to use multiple software systems to manage their finances.
“Today I’m proud that Divvy is joining Bill.com to bring the one-stop-shop platform that our customers and the market have been asking for.”