A publicly traded financial technology company named Billtrust said it has consented to be purchased by investment company EQT in a $1.7 billion transaction. Billtrust's share price is valued at $9.5 in the deal. That is a 64% increase over the stock's Tuesday closing price for the company.
Billtrust, formally BTRS Holdings Inc., offers cloud services that B2B enterprises use to handle customer payments. The services provided by Billtrust allow businesses to set up online stores where their clients can self-serve purchases.
Billtrust also provides several additional functions. It enables businesses to accept a variety of payment options and to provide credit to simplify complicated transactions. Businesses can sync transaction data from Billtrust to other programmes, such as their enterprise resource planning software, using several built-in connectors.
Large businesses frequently use an accounts payable portal, a cloud service, to manage supplier payments. Suppliers can submit invoices directly to the account payables portals of their enterprise customers using Billtrust's Business Payments Network platform. The platform, according to Billtrust, lessens the need for and costs associated with custom software development.
Billtrust expects its fiscal year 2022 to end with total net revenues of between $166 million and $171 million. The projection from Billtrust shows a 28% increase over the prior year at the midpoint. Although the business is not yet profitable, by the conclusion of its fiscal year in 2023, it hopes to be.
One of the possible explanations for EQT's decision to provide a 63% premium over Billtrust's most recent closing price is that the company is getting closer to profitability. Potentially contributing was the Business Payments Network of Billtrust, which has increased. According to the business, the deal is anticipated to close in the first quarter of 2023.
In March, the Stockholm-based investment company EQT managed 90 billion euros in assets. SUSE SA, a producer of corporate software, was purchased by EQT in 2018 for $2.53 billion. EQT listed SUSE on the stock market three years later, raising 1.1 billion euros.
About Billtrust
Billtrust formally known as BTRS Holdings Inc. provides integrated payment processing solutions and cloud-based software that streamlines and automates B2B trade. Accounts receivable (AR) is dysfunctional and relies on antiquated, ineffective, manual, and mostly paper-based traditional processes. Billtrust is at the forefront of the digital transformation of AR with mission-critical solutions for credit decision and monitoring, online ordering, invoicing, cash application and collections. Billtrust's solutions interact with various ecosystem participants, including banking institutions, enterprise resource planning (ERP) systems, and accounts payable (AP) software platforms, to assist clients more rapidly and effectively in recognising revenue. Customers switch from costly paper invoicing and check acceptance to effective electronic billing and payments using Billtrust's technology, which speeds up revenue capture, results in cost savings, and improves user experience.
About EQT
Private equity firm EQT has its head headquarters in Stockholm, Sweden. It makes investments in businesses and areas that use an industrial approach. Private capital (including ventures, mid-market, and equities), real assets (including infrastructure and real estate), credit, and public value make up its four primary investment strategies. These are supported by a responsible ownership approach and an industrial growth strategy.
