The deal calls for Bill.com to pay USD 625 million in cash plus USD 1.875 billion in stock, a statement said. The boards of both Divvy and Bill.com have approved the sale, which is expected to close by the end of Bill.com’s first fiscal quarter ending on 30 September 2021.
Founded in 2016, Divvy provides software that helps businesses combine expense management software and smart corporate cards onto a single platform. Divvy has raised USD 417.5 million in funding, as Crunchbase shows.
This includes a USD 165 million Series D round in January 2021 that saw Hanaco, PayPal Ventures, Whale Rock Capital Management, and Schonfeld Strategic Advisors participate. The round valued Divvy at USD 1.6 billion.
The much bigger Bill.com, which has a USD 10.7 billion market capitalisation, offers cloud-based software that helps small and midsize businesses automate their back-office financial operations. By buying Divvy, Bill.com will be able to offer expense management and budgeting software, along with smart corporate cards, to its more than 115,000 customers and its 2.5 million network members. News of the deal caused Bill.com’s stock to gain nearly 14% in aftermarket trading to USD 148.50.
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