Bill.com, which provides software to automate complex back-office financial operations, has announced it will acquire the U.S. based fintech unicorn Divvy for $2.5 billion. The acquisition will enable Bill.com to expand into spend management technology.
DIvvy currently combines expense management software and smart corporate cards into a single platform. Bill.com is hoping that cross-selling its services to Divvy customers and offering Divvy’s services to Bill.com customers will help the business reach scale faster and justify the valuation.
Bill.com currently has a customer base of over 115,000 small or medium size businesses compared to Divvy’s 7,500, so the acquisition should help Divvy tap into a much larger customer base at an accelerated pace.
The acquisition is expected to close prior to the end of September of 2021. The $2.5 billion transaction price is composed of $625 million in cash while the remaining $1.875 billion will be Bill.com stock.