Billtrust, a Lawrenceville-based provider of cloud-based software and integrated payment processing solutions that simplify and automate business-to-business commerce, announced Wednesday that it has entered into a definitive agreement to be acquired by a global private equity company in a transaction valued at $1.7 billion.
Billtrust is being acquired by EQT X fund, part of EQT.
Under the terms of the agreement, Billtrust shareholders will receive $9.50 per share in cash upon the closing of the transaction. The price per share represents more than a 64% premium above the closing share price Tuesday of $5.77 — a more than a 76% premium above the trailing 90-day volume-weighted average stock price for the period ended Sept. 27.
The transaction, which was approved by the Billtrust board of directors, 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 completion of the transaction, Billtrust’s shares will no longer trade on the Nasdaq, and Billtrust will become a private company.
Billtrust founder and CEO Flint Lane was excited to announced the deal.
“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,” he said.
“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.”
Billtrust is a leading provider of cloud-based software and integrated payment processing solutions that simplify and automate B2B commerce. Accounts receivable is broken and relies on conventional processes that are outdated, inefficient, manual and largely paper based. Billtrust is at the forefront of the digital transformation of AR, providing mission-critical solutions that span credit decisioning and monitoring, online ordering, invoice delivery, payments and remittance capture, invoicing, cash application and collections.
EQT is a purpose-driven global investment organization with EUR 77 billion in assets under management as of June 30, across 36 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and the Americas, with total sales of approximately EUR 29 billion and more than 280,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
Since its founding in 2001, Lane feels Billtrust has maximized its customers’ operational efficiency across the order-to-cash spectrum with a flexible and integrated cloud-based solution.
Billtrust accelerates cash flow by automating complex and historically manual processes around credit decisioning and monitoring, online ordering, invoicing, payments and remittance capture, cash application and collections.
Arvindh Kumar, partner and co-head of EQT’s Global Technology Sector Team, said the company is a good fit.
“We look forward to partnering with Billtrust in its journey to help customers digitize and streamline their finance operations,” he 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 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.”