Bill.com, which serves small and medium-sized businesses (SMBs), is said to be the anticipated acquirer of Divvy, Forbes reported, citing two unnamed sources.
The firms could potentially be intending to reveal the arrangement on Thursday (May 6) at the earliest. At that time, Bill.com is set to post its quarterly earnings, Forbes reported.
According to the report, the possible transaction’s conditions are not known.
However, Bill.com reportedly went to the startup previously with an offer in excess of $2 billion, according to Forbes, which cited an unnamed source.
Divvy, which is based in Lehi, Utah, was established in 2015 by Alex Bean and Blake Murray. The company garnered over $32 million in revenue in 2019, Forbes reported, citing a 2020 profile.
The report comes as a blockbuster $1.77 trillion in merger and acquisition (M&A) transactions were revealed through the first four months of this year, Forbes reported.
In January, Divvy announced that it had notched $165 million in a funding round. Divvy said a press release at the time that its “simplified process and cost-saving benefits are especially important to Main Street businesses that are navigating the challenges and opportunities brought on by the COVID-19 pandemic.”
The firm said its platform links “free expense management software with corporate credit cards.”
Ramp says that the infusion will be harnessed to help with expansion and product development, like the addition of new payment functionalities such as sophisticated card controls, automated savings and accounting automation.
New York-based Ramp generates revenue from taking a part of interchange fees in addition to a monthly charge from customers harnessing more premium software features.