Bill.com, which provides back-office software, has struck a deal to buy Divvy in a stock-and-cash transaction valued at about $2.5 billion. Utah-based Divvy’s platform puts expense-management software and smart corporate cards together.
Headquartered in San Jose, California, Bill.com provides cloud-based software that automates back-office financial operations for small and medium-sized businesses (SMBs).
The acquisition will further Bill’s “vision to transform SMB financial operations,” said René Lacerte, Bill.com CEO and founder. He added, in a press release, that both companies are driving “customers’ digital transformations.” He said the combined company’s “platform will provide more automation and real-time information to SMBs, enabling them to make more informed decisions.”
The release said that Bill.com has more than 115,000 customers. For its part, Divvy offers such services as automated payables and receivables to its more-than 7,500 SMB customers.
“We are excited to be joining forces with Bill.com to help SMBs grow and thrive by modernizing and transforming their financial operations,” said Blake Murray, Divvy CEO and co-founder. The deal will create a “one-stop-shop platform that our customers and the market have been asking for.”
The release said that the acquisition has been approved by companies’ two boards. The deal, subject to regulatory approval, is expected to close by the end of Bill.com’s first fiscal quarter, ending September 30, 2021.
The plan is for Bill.com, traded on NYSE, to acquire Divvy for about $625 million in cash and $1.875 billion in stock.
A recent PYMNTS report looked at business leaders’ chief concerns regarding their business-to-business (B2B) payment operations. Payments 2021: Assessing The Digital Gaps In Business Payment Flows, a collaboration between PYMNTS and Flywire, surveyed 459 decision makers at technology firms, education institutions and travel companies.
Results showed that 22 percent of businesses cited real-time access to payments data as a problem. In addition, 46 percent of tech firms said they consider cost when judging the efficiency of their accounts receivable operations.