Fintech agency Invoice.com has agreed to get Divvy for about $two.five billion in a transfer to increase devote management and corporate playing cards to its back again-workplace methods.
Invoice.com’s cloud software package allows little and midsize corporations automate billing and invoicing, whilst Divvy brings together price management software package and clever corporate playing cards into a single system. Due to the fact launching in February 2018, Divvy says it has signed up much more than nine,000 clients.
Below the conditions of the deal, Invoice.com will get Divvy for about $625 million in funds and $1.875 billion of Invoice.com shares. During a $a hundred sixty five million funding round in January, Divvy established its valuation at about $1.6 billion.
“Customers have been inquiring us to help them with their devote management, and I am energized that jointly with Divvy, we can supply on that question, furthering our vision to change SMB money operations,” Invoice.com CEO René Lacerte said in a information launch
“Our expanded system will present much more automation and serious-time facts to SMBs, enabling them to make much more informed selections,” he added.
On the information of the deal, Invoice.com shares jumped fourteen.3% to $149 in just after-several hours buying and selling Thursday.
According to Protocol, there has been a “frenzy in the [fintech] marketplace for startups centered on devote management and corporate credit playing cards.” Amongst Divvy’s rivals, Brex just elevated $425 million at a $seven.4 billion valuation and Ramp also elevated capital, at a $1.6 billion valuation.
“Investors imagine that firms can gain from an all-in-just one software package system to manage all factors of expending,” Protocol said.
Invoice.com, which employs roughly 800 folks and has a $ten.seven billion sector capitalization, claimed to start with-quarter profits of $59.seven million on Thursday, beating estimates of $fifty four.63 million.
“By getting Divvy, Invoice.com will be equipped to supply price management and budgeting software package, along with clever corporate playing cards, to its much more than a hundred and fifteen,000 clients and its two.five million network users,” Barron’s said.
Divvy at this time serves much more than seven,500 little corporations. “I’m very pleased that Divvy is joining Invoice.com to convey the just one-quit-store system that our clients and the sector have been inquiring for,” CEO Blake Murray said.