Bottomline Is Being Acquired by Thoma Bravo for $2.6B

Bottomline Technologies (Nasdaq: EPAY), a provider of financial technology that makes complex business payments simple, smart and secure, announced that it has entered into a “definitive agreement” to be acquired by Thoma Bravo, a software investment company, “in an all-cash transaction that values Bottomline at approximately $2.6 billion.”

Upon completion of the transaction, Bottomline will “become a privately held company,” according to a release.

Under the terms of the agreement, Bottomline shareholders will “receive $57.00 per share in cash, which represents a premium of approximately 42% to Bottomline’s unaffected closing stock price on October 19, 2021, the last full trading day prior to the announcement of the formation of the Bottomline Board of Directors’ Strategy Committee, and a premium of approximately 41% to Bottomline’s 30-day volume weighted average price as of October 19, 2021.”

Rob Eberle, CEO of Bottomline, stated:

“We have been executing against our strategy of establishing competitive advantage with a product set designed to transform business payments for companies and financial institutions around the world. Our partnership with Thoma Bravo will provide additional resources and greater flexibility to build on our leadership position, invest in continued innovation and accelerate go-to-market efforts to deliver increased value to customers. Additionally, the transaction will allow Bottomline to benefit from the operating capabilities, capital resources and sector expertise of one of the most experienced and successful software and financial technology investors.”

Joe Mullen, Chairman of the Bottomline Board, remarked:

“The Bottomline Board of Directors regularly evaluates opportunities to enhance shareholder value. Following a thorough process to review strategic alternatives, we are confident that this transaction with Thoma Bravo provides a compelling opportunity to deliver immediate and certain cash value at a meaningful premium to Bottomline shareholders, as well as significant long-term benefits for customers, channel partners and employees.”

Holden Spaht, a Managing Partner at Thoma Bravo, added:

“Bottomline is well positioned in exciting and dynamic markets and we look forward to applying our operational and investment expertise in software and financial technology to support Bottomline in its next phase of growth.”

Brian Jaffee, a Principal at Thoma Bravo, said:

“We’ve been tracking Bottomline as part of our broader financial technology effort for many years and are excited to work closely with the company to continue building on its strong track record of consistent innovation and growth. We look forward to partnering with Bottomline’s highly-experienced management team to support their vision for continued growth and unwavering focus on delighting customers.”

As noted in the release, Thoma Bravo is one of the largest private equity firms in the world, “with more than $91 billion in assets under management as of September 30, 2021.”

The firm invests in growth-oriented, innovative companies “operating in the software and technology sectors.”

Leveraging its deep sector expertise and strategic and operational capabilities, Thoma Bravo collaborates with its portfolio companies to “implement operating best practices, drive growth initiatives and make accretive acquisitions intended to accelerate revenue and earnings.”

For more details on this announcement, check here.

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