The transaction that has been approved by the Board of Directors of Billtrust is expected to close in the first quarter of 2023, subject to customary closing conditions, including approval by Billtrust shareholders and regulatory approvals
Swedish private equity firm EQT X fund (EQT Private Equity) has signed a definitive agreement to acquire business payments automation company BTRS Holdings (Billtrust).
Under the terms of the agreement, Billtrust shareholders will receive $9.50 per share in cash, which values the total equity of the company at around $1.7bn.
The transaction price represents more than a 64% premium to the closing share price of Billtrust common stock of $5.77 on 27 September 2022.
The transaction has been approved by the Board of Directors of Billtrust.
It is expected to close in the first quarter of 2023, subject to customary closing conditions, including approval by Billtrust shareholders and receipt of applicable regulatory approval.
Upon the closing of the transaction, Billtrust becomes a private company, and its shares will no longer be trading on the NASDAQ.
EQT partner and global technology sector team co-head Arvindh Kumar said: “The Billtrust platform features modern solutions, a compelling value proposition, and, like EQT, a commitment to innovation and transformation in the digital era.
“Additionally, the Company operates at the intersection of software, fintech, and payments – sectors in which EQT has a deep familiarity and a track record of success.
“With proprietary end-to-end solutions that generate value for all stakeholders and across economic cycles, Billtrust is poised to advance its leading offering in the underpenetrated accounts receivable automation space.”
In July this year, Reuters reported that Billtrust is exploring opportunities for potential sale, and is working with an investment bank, considering its alternatives.
Established in 2001, Billtrust offers cloud-based software solutions that help businesses shift from paper invoicing to an integrated digital payments system.
The company automates complex manual processes related to credit decisioning and monitoring, online ordering, invoicing, payments and remittance capture, cash application and collections.
Billtrust has more than 760 employees and serves in seven countries.
J.P. Morgan Securities served as an exclusive financial advisor and Davis Polk & Wardwell as legal counsel to Billtrust on the transaction.
Also, Evercore served as financial advisor to EQT, and Weil, Gotshal & Manges as legal counsel to EQT.
Billtrust founder and CEO Flint Lane said: “This transaction marks the beginning of an exciting new chapter for Billtrust, our customers and employees while providing shareholders an immediate and substantial cash value with a compelling premium.
“We believe B2B payments and accounts receivable continue to be ripe for massive disruption and innovation, and our partnership with EQT will provide us with greater resources and flexibility to build on our leadership position.”