The deal is expected to strengthen Bill.com’s current accounts receivable offering
Cloud-based software provider Bill.com has signed an agreement to acquire Invoice2go in a stock and cash transaction worth nearly $625m.
With offices in Sydney, Australia and Palo Alto, California, Invoice2go is a major mobile-first accounts receivable (AR) software company.
The acquisition is expected to strengthen Bill.com’s current accounts receivable offering.
Invoice2go provides its software solutions to small businesses and freelancers to enable them to expand their client base, manage invoicing and payments, and build their brand, among others.
The company claims to have a large global customer base of small businesses.
Bill.com CEO and founder René Lacerte said: “We are investing to accelerate the adoption of our accounts receivable offering. The acquisition of Invoice2go will bring a leading product and a very talented team to Bill.com.
“It supports our strategy to invest in our platform to be a one-stop-shop solution for businesses to transform their financial operations, make and receive payments, and manage their cash flow. Invoice2go’s international team and customer base will enable us to serve more businesses around the globe.”
The AR solution developed by Invoice2go simplifies the way businesses engage and interact with their customers and generate professional invoices. It is also claimed to help in streamlining their AR operations through mobile and desktop solutions.
Together with Bill.com’s platform and payments expertise, the AR solution is expected to assist businesses in getting paid quickly with electronic payments.
The transaction is expected to be completed by the end of this year, subject to receipt of regulatory approvals and other customary closing conditions. The acquisition cost will consist of 75% in Bill.com common stock and 25% in cash.
Bill.com provides its software for small and midsize businesses to simplify, digitise, and automate their complex, back-office financial operations.
The company’s platform is used by businesses to manage end-to-end financial workflows and to process payments.
Invoice2go CEO Mark Lenhard said: “Combining Bill.com’s market-leading payments platform and broad market reach with Invoice2go’s deep AR expertise provides a unique opportunity to offer SMBs and freelancers a powerful platform to streamline their day-to-day financial operations and control their cash flow.”
Last month, Bill.com completed the acquisition of Divvy, a major player in spend management, for nearly $2.5bn.