Blank check vehicle South Mountain Merger has agreed to acquire business-to-business (B2B) order-to-cash group Billtrust in a deal worth USD 1.30 billion.
The deal allows the firm to be listed on Nasdaq, where the special purpose acquisition vehicle (SPAC) completed its initial public offering (IPO) in August 2019.
Upon closing, the combined company will change its name to BTRS Holdings and will be floated under a new symbol and will be led by Billtrust’s management team by Flint Lane, Steve Pinado and Mark Shifke, as chief executive, president and head of finance, respectively.
The target is billed as a leading provider of cloud-based software and integrated payment processing solutions that simplify and automate B2B commerce.
Accounts receivable (AR) is broken and relies on conventional processes that are outdated, inefficient, manual and largely paper based.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 include credit decisioning and monitoring, online ordering, invoicing, cash application and collections.
Customers of the business use the platform to transition from expensive paper invoicing and check acceptance to efficient electronic billing and payments to accelerate revenue capture, generate cost savings and provides a better user experience.
South Mountain is valuing Billtrust at 8.0x and 10.5x multiple to 2021 expected revenue of generally accepted accounting principles (GAAP) USD 161.00 million and non-GAAP revenue of USD 123.00 million, respectively.
The cash component of the purchase price will be paid to the equity holders and will be funded by cash in trust and a USD 200.00 million private placement raised at USD 10.00 per share.
Both boards have approved the deal, which is expected to close in early 2021.
Flint Lane, chief executive of Billtrust, said: “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.
“We believe AR is ripe for innovation, and together we will continue to invest in opportunities to scale the business, growing both organically and inorganically, as we seek to tackle the large total addressable market.”
© Zephus Ltd