EQT Private Equity will buy out Billtrust in an all-cash deal for almost $1.7 billion in equity, BTRS Holdings Inc. said on Wednesday.
Upon completion of the transaction, shareholders of the business payments vendor will receive $9.50 in cash per share, a 64% premium over the stock’s most recent closing price. Besides, early trading saw BTRS shares jump by 60.1%.
Billtrust’s founder and CEO, Flint Lane, said that the deal “marks the beginning of an exciting new chapter for Billtrust, their customers and employees. In addition, it offers shareholders an immediate and considerable financial value with a compelling premium.
Lane claimed that their cooperation with EQT Private Equity would provide them more resources and freedom to strengthen their leading position. Also, according to them, B2B payments and accounts receivable were still very susceptible to huge upheaval and innovation.
The Lawrenceville, New Jersey-based company was reportedly looking into possibilities in July, including a possible sale to a private equity firm.
The decision by Billtrust comes as high-growth digital stock valuations are being impacted by gloomy expectations. But, Swedish company Klarna’s valuation fell from $46 billion to $6.7 billion during its funding round in July.
Since the COVID-led digital payments boom peaked in February 2021, shares of BTRS have fallen by about 70%. After combining with a special purpose acquisition company in January 2021, the business has gone public.
Moreover, shares of other industry titans in digital payments have also taken a beating. Block Inc. has fallen more than 60% and PayPal Holdings Inc. has lost 50% so far this year.
Businesses can transition from paper invoicing to an integrated digital payments system with the aid of Billtrust’s cloud-based software. On its website, it also lists seven countries where it employs more than 760 people.
Nevertheless, as of June 30 of current year, EQT managed assets of 77 billion euros ($73.91 billion), with portfolio companies located in Europe, Asia-Pacific, and the Americas.
