Since its launch, Utah-based Divvy has let its mission of “supporting the small and medium-sized businesses that are the backbone of the economy” guide its business practices, with customers cited to be the company’s true north. To achieve its mission, the company seeks to provide SMBs with the capital they need and the software to manage it in order to grow and thrive.
This first came in the form of corporate cards and automated expense reports. Today, Divvy customers enjoy a comprehensive platform for managing their finances, making the company a market leader in spend management. Divvy has become renowned for modernizing finance for businesses through its ability to merge expense management software and smart corporate cards onto a simple platform.
Its success in doing this has piqued the interest of Bill.com, a market leading platform that offers automated payable, receivables, and workflow capabilities to thousands of active SMBs. Both companies share a goal of servicing SMBs, enabling them as much ease and efficiency as possible in maintaining their finances all in one platform. Bill.com's ability to simplify, digitize, and automate complex back-office financial operations through its cloud-based software has, until now, lacked the integration of corporate cards.
Now, Bill.com has recently announced that it is acquiring Divvy in a definitive agreement. It has been shared that the acquisition will take place as a stock and cash transaction. This comes following a year of growth for Divvy and with the acquisition, both companies will now be able to make good on the promise to become a ‘one-stop-shop’ for all things financial management.
Growing together will be a huge bonus for both companies, who will no doubt be able to yield much from the other’s successes and points of difference. The combination will also enable both companies to experience an expanded market opportunity.
Speaking on this and some developments that will come out of the acquisition, René Lacerte, Bill.com Founder and CEO said, “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.”
Although, until now, Divvy has done very well growing on its own, this new acquisition will allow the company to better serve its goals with the support, resources, and experience of the powerhouse that is Bill.com. Bill.com will acquire Divvy for approximately $625 million in cash, and $1.8 billion of Bill.com common stock. The $2.5 billion transaction exceeds Divvy’s current valuation of $1.6 billion.