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Bill.com has announced its acquisition of Divvy, a leader in spend management for small and midsize businesses, in a deal valued at approximately $2.5 billion. This strategic move aims to enhance Bill.com's platform, providing a comprehensive solution for managing B2B spend. The acquisition underscores the growing importance of integrated financial management solutions in the industry.
Founded in 2016, Divvy offers a comprehensive financial management solution that combines a company card with expense management software. Its core services include business credit, virtual cards, budget management, reimbursements, and a highly-rated mobile app. Divvy stands out in the market with its real-time visibility and customizable control over business finances, free software access with the Divvy Card, and a rewards program offering cash back, travel, and gift cards. Additionally, it integrates seamlessly with popular accounting software.
BILL is a leading financial operations platform that automates and streamlines financial processes for businesses and firms. Its key products include accounts payable automation, accounts receivable management, spend and expense management, and cashflow forecasting. BILL integrates seamlessly with various accounting software, ensuring secure transactions and compliance with financial regulations. With a significant market presence, BILL is trusted by millions of businesses and accounting firms, recognized for its efficiency and extensive network of users.
Bill.com announced its acquisition of Divvy on May 6, 2021, and completed the transaction on June 1, 2021. This acquisition occurred during a period marked by a surge in mergers and acquisitions, reflecting a broader industry trend towards the consolidation of financial technology services. The move aligns with the growing demand for integrated financial solutions that streamline back-office operations and provide real-time insights, catering to the needs of small and midsize businesses.
Market Expansion: The acquisition significantly expands Bill.com's addressable market opportunity by enabling the company to offer expense management and budgeting software combined with smart corporate cards to its more-than 115,000 customer base and its network of 2.5 million members. Divvy will also be able to offer automated payable, receivables, and workflow capabilities to the more-than 7,500 monthly active SMBs that it serves.
Technology Integration: The integration of Divvy's expense management software with Bill.com's existing platform is a key technological advancement. This integration will enable businesses to manage accounts payable, accounts receivable, and corporate card spend all in one place, providing real-time insights and automating financial operations.
Competitive Advantage: The combined capabilities of Bill.com and Divvy create a competitive advantage by offering a one-stop-shop solution for SMBs. This comprehensive platform simplifies financial operations, saves time and money, and provides real-time insights into cash flow and spending, making it a valuable tool for businesses looking to streamline their financial processes.
The acquisition of Divvy by Bill.com has led to significant changes in operations and management. Divvy's expense management software and smart corporate cards are now integrated into Bill.com's platform, creating a comprehensive financial management solution. This integration aims to streamline financial operations for small and midsize businesses (SMBs), providing real-time insights into B2B spending. The leadership teams of both companies have expressed enthusiasm about the merger, highlighting a shared vision to enhance customer experience and drive digital transformation in financial operations.
In terms of product offerings, the acquisition has expanded Bill.com's capabilities to include Divvy's budgeting and expense management tools, offering a one-stop-shop for managing accounts payable, accounts receivable, and corporate card spend. This enhanced platform is expected to provide SMBs with better control over their finances, improved cash flow management, and simplified back-office operations. Employee reactions have been positive, with a shared excitement about the combined potential of the two companies. Customers have also responded favorably, appreciating the comprehensive solution that addresses their financial management needs.
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