Billtrust To Go Public Via SPAC At $1.3B Valuation

B2B order-to-cash solutions provider Billtrust and special purpose acquisition company (SPAC) South Mountain Merger Corporation announced on Monday (Oct. 19) that they have entered into a “definitive business combination agreement.”

The combined firm will continue as a publicly listed group, with a roughly $1.3 billion implied estimated enterprise value at closing based on present assumptions, according to the announcement.

“Over the last 19 years, we have built comprehensive B2B commerce solutions across the value chain, creating real business outcomes and significant value for our customers, while making it easy for them to get paid,” Billtrust Founder and CEO Flint Lane said in the announcement. “As we begin our journey as a public company, we are thrilled to partner with the South Mountain team and know we will benefit from their extensive industry experience.”

Billtrust’s and South Mountain’s boards have unanimously given the green light to the transaction, which is forecasted to close early next year.

The closing is subject to the “effectiveness of a registration statement to be filed with the Securities and Exchange Commission (SEC),” the statement noted, along with approval from South Mountain investors and other “customary closing conditions,” including a $225 million cash condition. $200 million of the cash condition has been committed through a private investment in public equity (PIPE), in addition to an incremental $22 million via a non-redemption commitment from an institutional investor, the announcement stated.

The firm plans to be known as BTRS Holdings Inc. upon closing of the transaction, and is anticipated to trade on The Nasdaq Stock Market with a new ticker symbol.

“Over the years, I have had the pleasure of watching Flint and the Billtrust team solve some of the most complex problems in AR with their powerful technology platform,” South Mountain CEO Chuck Bernicker said in the announcement. “Billtrust’s end-to-end solutions are truly driving the digital transformation of AR and represent the future of B2B payments.”