Bill.com could soon announce acquisition of expense-reporting startup Divvy

Bill.com, which reports earnings this week, is reportedly on the cusp of acquiring expense-management startup Divvy, which was recently valued at $1.6B.

Why should we care?
The field of expense management startups – which include Brex, Ramp, and Teampay – is high-growth territory, with companies rushing to gain market share with products that simplify corporate expense management with sleek, flexible and user-friendly experiences. “The valuation of $1.6B … validates Divvy’s ambition to modernize financial processes by combining credit, vendor, and spend management into a single platform,” Divvy said earlier this year. (Brex boasts a valuation of $7.4B and Ramp is reportedly valued at $1.6B.) Bill.com, which boasts a market capitalization of $12B, offers a cloud-based platform that helps businesses manage their financial operations. Terms of the yet-to-be-announced deal to acquire Divvy aren’t known, but a report suggests Divvy could be scooped up for more than $2B. Divvy says it’s signed up more than 9,000 customers. Digital adoption during the pandemic amounted to a boost for Divvy, which reported a 500% increase in monthly sign-ups from March 2020 to January 2021. “We're not just building for tech startups—we help businesses across the country by providing the capital and financial software they need to thrive,” Blake Murray, CEO of Lehi, Utah-based Divvy, said earlier this year.