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Divvy acquisition10/2/2023 Recently, announced its acquisition of Utah-based Divvy. It processed $35 billion in total payment volume, growing 44% over the year from 7.2 million transactions. Subscription fees grew 32% to $29.3 million, and Transaction fees increased 112% to $29.3 million.Īmong key metrics, it reported a customer growth of 27% over the year to over 115,600. The market was looking for a loss of $0.07 per share for the quarter.īy segment, subscription and transaction revenues grew 62% to $58.6 million. Non GAAP net loss was $1.7 million, or $0.02 per share, compared with a net loss of $2.4 million or $0.03 per share last year. Revenue for the quarter grew 38% to $59.74 million, significantly ahead of estimates of $54.64 million. GAAP net loss was $26.7 million, compared to net loss of $8.3 million a year ago. continues to expand its offerings for the sector through partnerships and acquisitions. īill.com (NYSE:BILL), a cloud-based provider of financial services for SMBs, recently announced its third quarter results that surpassed market expectations. I like fundamentals-focused business building, and outline the principles of fundamentals-focused business building in my free Bootstrapping course. Please subscribe to my Cloud Stock Analysis series and never miss an article. The $2.5 billion transaction exceeds Divvy’s current valuation of $1.6 billion.I’m publishing this series to discuss a topic that I follow closely - cloud stocks, trends, strategy, acquisitions, and more. will acquire Divvy for approximately $625 million in cash, and $1.8 billion of common stock. Our expanded platform will provide more automation and real-time information to SMBs, enabling them to make more informed decisions.”Īlthough, until now, Divvy has done very well growing on its own, this new acquisition will allow the company to better serve its goals with the support, resources, and experience of the powerhouse that is. Speaking on this and some developments that will come out of the acquisition, René Lacerte, Founder and CEO said, “Customers have been asking us to help them with their spend management, and I am excited that together with Divvy, we can deliver on that ask, furthering our vision to transform SMB financial operations. The combination will also enable both companies to experience an expanded market opportunity. Growing together will be a huge bonus for both companies, who will no doubt be able to yield much from the other’s successes and points of difference. This comes following a year of growth for Divvy and with the acquisition, both companies will now be able to make good on the promise to become a ‘one-stop-shop’ for all things financial management. It has been shared that the acquisition will take place as a stock and cash transaction. Now, has recently announced that it is acquiring Divvy in a definitive agreement. 's ability to simplify, digitize, and automate complex back-office financial operations through its cloud-based software has, until now, lacked the integration of corporate cards. Both companies share a goal of servicing SMBs, enabling them as much ease and efficiency as possible in maintaining their finances all in one platform. Its success in doing this has piqued the interest of, a market leading platform that offers automated payable, receivables, and workflow capabilities to thousands of active SMBs. Please purchase a subscription to continue reading this article.
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