Acquisition to extend Bill.com’s platform to enable customers to manage all B2B spend in one place
Business payments company Bill.com has agreed to acquire expense management and business budgeting software provider Divvy for about $2.5bn in a cash-cum-stock deal.
The consideration is made up of nearly $625m in cash and $1.87bn of Bill.com’s shares.
Based in Utah, Divvy combines expense management software and smart corporate cards into a single platform for modernising finance for businesses.
On the other hand, Bill.com offers cloud-based software for small and midsize businesses (SMBs) for simplifying, digitising, and automating complex back-office financial operations.
The California-based company said that the expanded solution it will offer following the acquisition will help businesses to automate the management of accounts payable, accounts receivable, and corporate card spend in one place.
Bill.com claimed that its expanded platform will equip businesses to spend smarter, improve their budget and cash flow management, and simplify their back-office financial operations. These will be possible by the real-time insight provided by its solution into all their B2B spending and access to different payment solutions.
Bill.com CEO and founder René Lacerte said: “Customers have been asking us to help them with their spend management, and I am excited that together with Divvy, we can deliver on that ask, furthering our vision to transform SMB financial operations.
“Our expanded platform will provide more automation and real-time information to SMBs, enabling them to make more informed decisions.”
The acquisition allows Bill.com to offer its customer base of more than 115,000 and its network of 2.5 million members with expense management and budgeting software combined with smart corporate cards.
Divvy, by joining Bill.com, can offer its more than 7,500 monthly active SMBs with automated payable, receivables, and workflow capabilities.
Divvy CEO and co-founder Blake Murray said: “We are excited to be joining forces with Bill.com to help SMBs grow and thrive by modernising and transforming their financial operations.
“At Divvy, our customers are our true north, and they always have been. 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.”
The transaction, which is subject to regulatory approvals and other customary closing conditions, is anticipated to close by the end of September 2021.