Bill.com to acquire spend management leader Divvy for $2.5 bn
By Pavithra R
Bill.com, a leading provider of cloud-based software that simplifies, digitizes, and automates complex, back-office financial operations for small and midsize businesses (SMBs) has announced entering into a definitive agreement to acquire Divvy in a stock and cash transaction valued at approximately $2.5 bn.
Founded in 2016, Divvy is a leader in spend management that modernizes finance for business by combining expense management software and smart corporate cards into a single platform. The firm in January raised $165 mn in Series D funding round bringing its valuation to $1.6 bn.
The acquisition supports Bill.com’s mission and enhances its ability to deliver value to the combined customer base. The firm’s expanded solution will enable businesses to automatically manage accounts payable (AP), accounts receivable (AR), and corporate card spend all in one place, saving them time and money. With real-time insight into all their B2B spending and access to multiple payment solutions, businesses will be empowered to spend smarter, better manage their budgets and cash flow, and simplify their back-office financial operations.
“Since founding Bill.com, I have been driven by the desire to build solutions that make a real difference for small and mid-sized businesses. 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. We are excited to work with the talented Divvy team. We have a shared passion for helping SMBs succeed and both companies are driving our customers’ digital transformations. Together, we can further empower SMBs to transition quickly and easily,” said René Lacerte, Bill.com CEO and Founder.
The combination is expected to expand the market opportunity for both companies. Bill.com can offer expense management and budgeting software combined with smart corporate cards to its more-than 115,000 customer base and its network of 2.5 mn members. Divvy will be able to offer automated payable, receivables, and workflow capabilities to the more-than 7,500 monthly active SMBs it serves.
“We are excited to be joining forces with Bill.com to help SMBs grow and thrive by modernize ing 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. 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,” said Blake Murray, Divvy CEO and Co-Founder.
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