Payment automation software provider Bill.com has agreed to buy Invoice2go for about $625 million to enhance its accounts receivable offerings.
Invoice2go allows business owners to send and track invoices through a mobile app or desktop dashboard while Bill.com supports a range of back-office operations for small and midsize businesses, including accounts receivable.
“We are investing to accelerate the adoption of our accounts receivable offering,” Bill.com CEO René Lacerte said in a news release.
The deal, he added, “supports our strategy to invest in our platform to be a one-stop-shop solution for businesses to transform their financial operations, make and receive payments, and manage their cash flow.”
Although most small business transactions are still made with paper checks, Lacerte said that “there is strong momentum to digitally transform and adopt e-payments … Between Bill.com and Invoice2go, there are billions of dollars of invoices being sent annually that can be enabled for electronic payments.”
Under the terms of the deal, Bill.com will acquire 75% of Invoice2go with its stock and the rest with cash. In trading Monday, Bill.com shares fell 1.6% to $204.80.
Invoice2go was founded in 2002 in Australia and has offices in Sydney and Palo Alto, Calif. It serves more than 225,000 businesses in 160 countries and processes more than A$24 billion a year in payments.
“Combining Bill.com’s market-leading payments platform and broad market reach with Invoice2go’s deep AR expertise provides a unique opportunity to offer SMBs and freelancers a powerful platform to streamline their day-to-day financial operations and control their cash flow,” Invoice2go CEO Mark Lenhard said.
In June, Bill.com completed its $2.5 billion acquisition of spend management software firm Divvy.