Bill.com Pays $625M For AR Software Provider Invoice2go

Back-office software provider Bill.com announced on Monday (July 19) that it had signed a definitive agreement to acquire Invoice2go in a $625 million stock and cash deal.

Based in Sydney, Australia and Palo Alto, Invoice2go is a mobile-first accounts receivable (AR) software provider that lets small businesses and freelancers manage invoicing and payments and expand their client bases.

The companies say the acquisition will enhance Bill.com’s existing AR option.

“Invoice2go’s AR solution makes it easy for businesses to engage and interact with their customers, generate professional invoices, and simplify their AR operations through mobile and desktop solutions,” the companies said in a news release. “Combined with Bill.com’s platform and payments expertise, there is a significant opportunity to help businesses get paid faster and more conveniently with electronic payments.”

René Lacerte, Bill.com’s founder and CEO, said the transaction comes at a time when many small businesses are looking to leave behind the days of paper checks and adopt e-payments. “Our payments expertise and go-to-market capabilities combined with Invoice2go’s product capabilities can make it even easier for businesses to get paid quickly and electronically,” he said. “Between Bill.com and Invoice2go, there are billions of dollars of invoices being sent annually that can be enabled for electronic payments.”

This is the second acquisition for Bill.com in as many months. In May, the company forged a deal to buy Divvy in a stock-and-cash transaction valued at about $2.5 billion. Based in Utah, Divvy’s platform puts together expense management software and smart corporate cards.

The acquisition will further Bill’s “vision to transform SMB financial operations,” Lacerte said at the time. He added that the two companies’ “platform will provide more automation and real-time information to SMBs, enabling them to make more informed decisions.”

These moves are happening at a time when 75 percent of technology firms think of their payment options to be at best “somewhat effective,” according to a recent PYMNTS survey.

At the same time, these companies say they’re spending an average of almost 3 percent of their yearly budgets on their payments operations, a figure that covers processing fees, staffing and third-party providers.