Fintech firm Bill.com has agreed to acquire Divvy for about $2.5 billion in a move to add spend management and corporate cards to its back-office solutions.

Bill.com’s cloud software helps small and midsize businesses automate billing and invoicing, while Divvy combines expense management software and smart corporate cards into a single platform. Since launching in February 2018, Divvy says it has signed up more than 9,000 customers.

Under the terms of the deal, Bill.com will acquire Divvy for about $625 million in cash and $1.875 billion of Bill.com shares. During a $165 million funding round in January, Divvy set its valuation at about $1.6 billion.

“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,” Bill.com CEO René Lacerte said in a news release

“Our expanded platform will provide more automation and real-time information to SMBs, enabling them to make more informed decisions,” he added.

On the news of the deal, Bill.com shares jumped 14.3% to $149 in after-hours trading Thursday.

According to Protocol, there has been a “frenzy in the [fintech] industry for startups focused on spend management and corporate credit cards.” Among Divvy’s rivals, Brex just raised $425 million at a $7.4 billion valuation and Ramp also raised capital,  at a $1.6 billion valuation.

“Investors believe that companies can benefit from an all-in-one software platform to manage all aspects of spending,” Protocol said.

Bill.com, which employs roughly 800 people and has a $10.7 billion market capitalization, reported first-quarter revenue of $59.7 million on Thursday, beating estimates of $54.63 million.

“By buying Divvy, Bill.com will be able to offer expense management and budgeting software, along with smart corporate cards, to its more than 115,000 customers and its 2.5 million network members,” Barron’s said.

Divvy currently serves more than 7,500 small businesses. “I’m proud that Divvy is joining Bill.com to bring the one-stop-shop platform that our customers and the market have been asking for,” CEO Blake Murray said.

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