Fintech firm Invoice.com has agreed to obtain Divvy for about $2.five billion in a go to insert spend administration and corporate playing cards to its again-workplace alternatives.
Invoice.com’s cloud program aids tiny and midsize corporations automate billing and invoicing, whilst Divvy combines expenditure administration program and intelligent corporate playing cards into a solitary platform. Because launching in February 2018, Divvy suggests it has signed up additional than nine,000 clients.
Under the terms of the deal, Invoice.com will obtain Divvy for about $625 million in hard cash and $one.875 billion of Invoice.com shares. For the duration of a $a hundred sixty five million funding round in January, Divvy established its valuation at about $one.six billion.
“Customers have been inquiring us to assist them with their spend administration, and I am enthusiastic that with each other with Divvy, we can supply on that ask, furthering our eyesight to rework SMB fiscal operations,” Invoice.com CEO René Lacerte explained in a news launch
“Our expanded platform will deliver additional automation and actual-time information to SMBs, enabling them to make additional informed decisions,” he included.
On the news of the deal, Invoice.com shares jumped fourteen.three% to $149 in just after-several hours investing Thursday.
In accordance to Protocol, there has been a “frenzy in the [fintech] sector for startups targeted on spend administration and corporate credit playing cards.” Among the Divvy’s rivals, Brex just raised $425 million at a $7.four billion valuation and Ramp also raised funds, at a $one.six billion valuation.
“Investors feel that firms can reward from an all-in-a single program platform to deal with all factors of paying,” Protocol explained.
Invoice.com, which employs about 800 men and women and has a $10.7 billion sector capitalization, claimed to start with-quarter income of $fifty nine.7 million on Thursday, beating estimates of $54.sixty three million.
“By shopping for Divvy, Invoice.com will be capable to provide expenditure administration and budgeting program, together with intelligent corporate playing cards, to its additional than 115,000 clients and its 2.five million network users,” Barron’s explained.
Divvy at this time serves additional than 7,five hundred tiny corporations. “I’m proud that Divvy is becoming a member of Invoice.com to carry the a single-cease-shop platform that our clients and the sector have been inquiring for,” CEO Blake Murray explained.