EQT acquires Billtrust for $1.7bn

December 2022 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

December 2022 Issue

In a deal that takes the financial services provider back into private equity ownership, Billtrust is to be acquired by Sweden-based investment organisation EQT in an all-cash transaction valued at approximately $1.7bn.

Under the terms of the definitive agreement, Billtrust shareholders will receive $9.50 per share in cash. The price per share represents more than a 64 percent premium above the closing share price of $5.77 on 27 September 2022, and more than a 76 percent premium above the trailing 90-day volume weighted average stock price.

Upon closing of the transaction, Billtrust’s shares will no longer trade on the NASDAQ, and Billtrust will become a private company.

Founded in 2001 and headquartered in New Jersey, Billtrust is a leading provider of cloud-based software and integrated payment processing solutions that simplify and automate business-to-business commerce. The company is at the forefront of the digital transformation of accounts receivable, providing mission-critical solutions that span credit decisioning and monitoring, online ordering, invoice delivery, payments and remittance capture, invoicing, cash application and collections.

“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,” said Flint Lane, founder and chief executive of Billtrust. “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’s acquirer, EQT, is a purpose-driven global investment organisation with €77bn in assets under management as of 30 June 2022, across 36 active funds. EQT funds have portfolio companies in Europe, Asia Pacific and the Americas with total sales of approximately €29bn and more than 280,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

For EQT, the acquisition represents the latest in a string of diverse megadeals. In July 2022, the organisation announced plans to purchase solar and storage developer Cypress Creek Renewables for an estimated $2bn. Additionally, in 2021 it acquired Spanish real estate internet portal Idealista for €1.3bn.

“We look forward to partnering with Billtrust in its journey to help customers digitalise and streamline their finance operations,” said Arvindh Kumar, partner and co-head of EQT’s global technology sector team. “The Billtrust platform features modern solutions, a compelling value proposition, and, like EQT, a commitment to innovation and transformation in the digital era.”

The transaction has been approved by the Billtrust board of directors and 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.

Serving as exclusive financial adviser to Billtrust is J.P. Morgan Securities LLC, with Davis Polk & Wardwell LLP acting as legal counsel. Evercore is serving as financial adviser to EQT, with Weil, Gotshal & Manges LLP acting as legal counsel.

“Billtrust operates at the intersection of software, FinTech and payments – sectors in which EQT has deep familiarity and a track record of success,” concluded Mr Lane. “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.”

Fraser Tennant