“Although BILL’s general policy is not to comment on market rumors or media speculation, BILL is not pursuing any such acquisition at this time,” the company said in a news release provided to PYMNTS Thursday (Nov. 9). A spokesperson for Melio likewise told PYMNTS the company does not “comment on rumors and speculation.”
The release was issued following a report by Bloomberg News that the company was working on a cash-and-stock deal that would value Melio at $1.95 billion,
Melio was valued at $4 billion in 2021 after raising $250 million in a funding round.
BILL has been dealing with a drop in spending among small- to medium-sized businesses (SMBs), Bloomberg reported. It introduced new purchase order tools for SMBs last month.
The FinTech sector is also struggling, as noted in “FinTechs Look to M&A for Profitability as Economic Shake-Up Continues,” an installment in PYMNTS’ FinTech Tracker® Series.
“FinTechs continue to face powerful economic headwinds in 2023,” the report said. “Rising interest rates, high inflation and lower consumer spending have put pressure on FinTech companies’ trailblazing models, requiring some painful adjustments.”
Fiserv, a global provider of payments and financial services technology solutions, teamed up with Melio last month for an offering designed to help financial institutions streamline accounts payable and receivable for SMBs.
The collaboration involves a solution called CashFlow Central, available from Fiserv, that is aimed at helping financial institutions better serve SMBs and regain market share from direct-to-business competitors.
“Now financial institutions have an answer, a comprehensive, integrated experience that is just right for small businesses, enabling them to pay and get paid electronically and instantly,” said John Gibbons, head of Fiserv’s financial institutions group.