Bill.com (NYSE:BILL), an established provider of Cloud-powered software that simplifies, digitizes, and automates back-office financial operations for SMBs, revealed on Monday (June 1, 2021) that it had finalized its acquisition of Divvy, a spend management solution provider, for around $2.5 billion “in stock and cash.”
René Lacerte, Bill.com CEO and Founder, stated:
“We are thrilled to welcome the Divvy team to Bill.com. Together, we can help SMBs manage all their B2B spend and workflow with one simple solution, saving them valuable time and money and providing real-time insight into their spend and cash flow. With the elegant spend management solution that the Divvy team brings, their dedication to serving SMBs, and their passion for driving innovation, together we can accelerate our vision to help SMBs transform, grow, and thrive by automating their financial operations.”
Blake Murray, Divvy CEO and Co-Founder, remarked:
“We are excited to join Bill.com and offer our customers and millions of businesses a comprehensive payments solution that saves them time and money. We have a shared vision to be the one-stop shop for credit and financial software. Together we achieve that vision faster and are better able to serve business owners and finance leaders.”
The acquisition of Divvy will aim to support Bill.com’s goal to make it simple to connect and conduct business.
The expanded solution should allow companies to support their digital transformation strategies and enhance their financial operations. Businesses will be able to effectively manage their accounts payable, accounts receivable, and corporate card spend “all in one place.”
The announcement further noted that companies get real-time insight into their B2B spending and can access several different payment solutions. Businesses will also be “empowered to spend smarter, better manage their budgets and cash flow, and simplify their back-office financial operations.”
Kevin Permenter, Research Manager at IDC, added:
“We see the combination of Bill.com and Divvy as potentially very valuable to small and mid-sized businesses because it creates a single software company focused on helping them to manage, track and control all their business to business spending versus them having to stitch together a number of point solutions.”
Bill.com aims to offer a financial update on its regularly scheduled 4th quarter earnings call. Goldman Sachs & Co. LLC acted as the financial advisor and Fenwick & West LLP was the legal counsel to Bill.com.
FT Partners acted as strategic and financial advisor and Morrison & Foerster LLP served as legal counsel to Divvy.