Fintech company Invoice.com has agreed to purchase Divvy for about $2.5 billion in a go to increase spend management and company cards to its again-business office remedies.
Invoice.com’s cloud software package assists modest and midsize companies automate billing and invoicing, whilst Divvy combines expenditure management software package and good company cards into a single system. Since launching in February 2018, Divvy claims it has signed up a lot more than nine,000 customers.
Beneath the phrases of the offer, Invoice.com will purchase Divvy for about $625 million in funds and $one.875 billion of Invoice.com shares. Through a $a hundred sixty five million funding spherical in January, Divvy established its valuation at about $one.6 billion.
“Customers have been inquiring us to assist them with their spend management, and I am psyched that jointly with Divvy, we can provide on that inquire, furthering our eyesight to transform SMB fiscal operations,” Invoice.com CEO René Lacerte explained in a news launch
“Our expanded system will provide a lot more automation and actual-time information to SMBs, enabling them to make a lot more informed conclusions,” he extra.
On the news of the offer, Invoice.com shares jumped fourteen.three% to $149 in immediately after-hrs trading Thursday.
According to Protocol, there has been a “frenzy in the [fintech] marketplace for startups focused on spend management and company credit rating cards.” Among the Divvy’s rivals, Brex just lifted $425 million at a $seven.4 billion valuation and Ramp also lifted cash, at a $one.6 billion valuation.
“Investors believe that that businesses can reward from an all-in-1 software package system to control all factors of paying,” Protocol explained.
Invoice.com, which employs roughly 800 people and has a $10.seven billion market capitalization, noted first-quarter profits of $59.seven million on Thursday, beating estimates of $fifty four.63 million.
“By purchasing Divvy, Invoice.com will be able to offer expenditure management and budgeting software package, together with good company cards, to its a lot more than one hundred fifteen,000 customers and its 2.5 million network members,” Barron’s explained.
Divvy at the moment serves a lot more than seven,five hundred modest companies. “I’m happy that Divvy is signing up for Invoice.com to carry the 1-cease-store system that our customers and the market have been inquiring for,” CEO Blake Murray explained.