Bill.com to Acquire Divvy, a Leader in Spend Management for SMBs
May 06 2021 - 3:06PM
Business Wire
Extends platform for customers to manage all
B2B spend in one place
Significantly expands addressable market
opportunity
Bill.com (NYSE: BILL), a leading provider of cloud-based
software that simplifies, digitizes, and automates complex
back-office financial operations for small and midsize businesses
(SMBs), announced today it has entered into a definitive agreement
to acquire Divvy in a stock and cash transaction valued at
approximately $2.5 billion. 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 acquisition supports Bill.com’s mission and enhances our
ability to deliver value to the combined customer base. Bill.com’s
expanded solution will enable businesses to automatically manage
accounts payable, accounts receivable, and corporate card spend all
in one place, saving them valuable 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,” said René Lacerte, Bill.com CEO and
Founder. “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.”
The combination will 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 million members. Divvy
will be able to offer automated payable, receivables, and workflow
capabilities to the more-than 7,500 monthly active SMBs that it
serves.
“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. “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.”
Details Regarding the Proposed Acquisition
The transaction has been approved by the Boards of Directors of
both Divvy and Bill.com. The deal is expected to close by the end
of Bill.com’s first fiscal quarter ending September 30, 2021, and
is subject to receipt of regulatory approvals and other customary
closing conditions.
Bill.com will acquire Divvy for approximately $625 million in
cash and $1.875 billion of Bill.com Common Stock, subject to
customary adjustments for transactions of this nature.
An investor presentation about the transaction is available on
our investor relations website at http://investor.bill.com.
Additional details and information about the terms and conditions
of the acquisition will be available in a current report on Form
8-K to be filed by Bill.com with the Securities and Exchange
Commission.
Advisors
Goldman Sachs & Co. LLC is serving as financial advisor to
Bill.com and Fenwick & West LLP is acting as legal counsel to
Bill.com. Financial Technology Partners (FT Partners) is serving as
exclusive strategic and financial advisor to Divvy and Morrison
& Foerster LLP are acting as legal counsel to Divvy.
Conference Call Information
Bill.com and Divvy executives will discuss the details of this
transaction during Bill.com’s fiscal third quarter earnings webcast
today, May 6, 2021, at 1:30 p.m. Pacific Time. The live webcast and
a replay of the webcast will be available at the investor relations
section of Bill.com’s website: http://investor.bill.com.
Cautionary Language Concerning Forward-Looking
Statements
This press release contains forward-looking statements relating
to expectations, plans, and prospects including expectations
relating to the benefits that will be derived from this
transaction. These forward-looking statements are based upon the
current expectations and beliefs of Bill.com’s management as of the
date of this release, and are subject to certain risks and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements including,
without limitation, the risk of adverse and unpredictable
macro-economic conditions, risks related to the ability of the
parties to satisfy the closing conditions in a timely fashion or at
all, and risks related to the integration of the companies. All
forward-looking statements in this press release are based on
information available to the Company as of the date hereof, and
Bill.com disclaims any obligation to update these forward-looking
statements.
About Bill.com
Bill.com is a leading provider of cloud-based software that
simplifies, digitizes, and automates complex, back-office financial
operations for small and midsize businesses. Customers use the
Bill.com platform to manage end-to-end financial workflows and to
process payments. The Bill.com AI-enabled, financial software
platform creates connections between businesses and their suppliers
and clients. It helps manage cash inflows and outflow. The company
partners with several of the largest U.S. financial institutions,
the majority of the top 100 U.S. accounting firms, and popular
accounting software providers. Bill.com has offices in San Jose,
California and Houston, Texas. For more information visit
www.bill.com.
About Divvy
Divvy modernizes finance for business by combining expense
management software and smart corporate cards into a single
platform. With Divvy, finance leaders get real-time visibility into
their company spend and flexible controls that prevent teams from
ever going over budget. By providing the capital and financial
software they need, Divvy helps businesses in every industry to
thrive. Divvy is headquartered in Draper, Utah. For more
information visit https://getdivvy.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20210506006169/en/
IR Contact: Karen Sansot ksansot@hq.bill.com
Press Contact: Oriana Branon obranon@hq.bill.com
619-997-0299
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