Bill.com has entered into a definitive agreement to acquire expense management company Divvy in a stock and cash transaction valued at approximately $2.5 billion.
Once closed, the purchase Bill.com will amount to approximately $625 million in cash and $1.875 billion of Bill.com Common Stock, subject to customary adjustments for transactions of this nature.
Bill.com’s expanded solution, which is used by accountants and their business clients, will allow for automatic management of accounts payable, accounts receivable and corporate card spend all in one place. The combined business will effectively 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.
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.