Payments

Bill.com to acquire expense management platform Divvy for about $2.5 billion

Bill.com has entered into a definitive agreement to acquire Divvy in a stock and cash transaction valued at about $2.5 billion, according to a press release.

The acquisition will enable Bill.com’s offerings to be expanded to let businesses automatically manage accounts payable, accounts receivable and corporate spend. Bill.com will acquire Divvy for about $625 million in cash and $1.875 billion of Bill.com. common stock.

“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,” René Lacerte, Bill.com CEO and Founder, said in a statement.

The transaction is expected to close by the end of Sept. 30, subject to regulatory approvals and closing conditions.

This article has been updated to reflect recent breaking news


According to Forbes’ Eliza Haverstock and Alex Konrad, Bill.com may announce its acquisition of Utah-based Divvy when it reports its first-quarter earnings tomorrow.

The corporate expense management platform, as of today, is reportedly worth a pre-money valuation of $1.6 billion, according to Crunchbase. The startup, founded in 2016 by Alex Bean and Blake Murray, has raised $417.5 million across five publicly known funding rounds. Forbes reported that, although the acquisition price is not known, Bill.com has floated paying $2 billion or more for Divvy in past exploratory conversations.

If the sale of Divvy to Bill.com was to go through, a number of well-known venture firms—New Enterprise Associates, Paypal Ventures, Insight Partners, Tiger Global Management and others—would be adding another, likely successful, exit to their portfolio.

Notably, Bill.com does not seem to have made any other acquisitions (or at least no acquisitions worth noting by the press and private capital databases). That’s a bit irregular; typically, public fintech companies have made a few acquisitions during its time as a private company.

As of this morning, Bill.com’s market is a touch above $11 billion. Its performance as a public company has been mostly seen as a success since it debuted in 2019. Divvy, meanwhile, touted impressive numbers as part of its last funding round announcement, reporting that “it had reached $100 million in spend through its service in its first 18 months of business,” according to TechCrunch.

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