Key Takeaways
- • EQT Private Equity, through its EQT X fund, agreed to acquire Billtrust (NASDAQ: BTRS) in an all-cash transaction valuing the company's equity at approximately $1.7 billion.
- • Billtrust shareholders will receive $9.50 per share in cash, a premium of more than 64% over the September 27, 2022 closing price of $5.77 and more than 76% over the trailing 90-day VWAP.
- • The deal is expected to close in Q1 2023, subject to Billtrust shareholder approval and regulatory clearance, after which Billtrust will delist from NASDAQ and become private.
- • J.P. Morgan Securities is exclusive financial advisor to Billtrust and Evercore advises EQT, with Davis Polk and Weil Gotshal serving as legal counsel respectively.
Summary
BTRS Holdings Inc. (Billtrust), a Lawrenceville, New Jersey-based provider of B2B accounts receivable automation and integrated payments software, has entered into a definitive agreement to be acquired by the EQT X fund, part of global investment organization EQT, in an all-cash transaction valuing its equity at approximately $1.7 billion, according to a Business Wire announcement issued September 28, 2022.
Under the agreement, Billtrust shareholders will receive $9.50 per share in cash at closing. The price represents a premium of more than 64% to the $5.77 closing share price on September 27, 2022, and more than 76% to the trailing 90-day volume weighted average stock price for the period ended that date. The transaction has been approved by Billtrust's Board of Directors and is expected to close in the first quarter of 2023, subject to customary conditions including approval by Billtrust shareholders and applicable regulatory approval. Upon completion, Billtrust shares will cease trading on NASDAQ and the company will become private.
Flint Lane, Billtrust founder and CEO, said the transaction marks "the beginning of an exciting new chapter" for customers, employees and shareholders, and that the partnership will provide greater resources and flexibility to build on the company's leadership position in B2B payments and accounts receivable. Billtrust, founded in 2001, automates order-to-cash processes including credit decisioning, online ordering, invoicing, payments, cash application and collections.
Arvindh Kumar, Partner and Co-Head of EQT's Global Technology Sector Team, said EQT sees Billtrust as operating at the intersection of software, fintech and payments, sectors where EQT has deep experience, and described accounts receivable automation as underpenetrated. EQT reported approximately EUR 77 billion in assets under management as of June 30, 2022, across 36 active funds.
J.P. Morgan Securities LLC is exclusive financial advisor to Billtrust and Davis Polk & Wardwell LLP is its legal counsel. Evercore is financial advisor to EQT and Weil, Gotshal & Manges LLP is its legal counsel.
Under the agreement, Billtrust shareholders will receive $9.50 per share in cash at closing. The price represents a premium of more than 64% to the $5.77 closing share price on September 27, 2022, and more than 76% to the trailing 90-day volume weighted average stock price for the period ended that date. The transaction has been approved by Billtrust's Board of Directors and is expected to close in the first quarter of 2023, subject to customary conditions including approval by Billtrust shareholders and applicable regulatory approval. Upon completion, Billtrust shares will cease trading on NASDAQ and the company will become private.
Flint Lane, Billtrust founder and CEO, said the transaction marks "the beginning of an exciting new chapter" for customers, employees and shareholders, and that the partnership will provide greater resources and flexibility to build on the company's leadership position in B2B payments and accounts receivable. Billtrust, founded in 2001, automates order-to-cash processes including credit decisioning, online ordering, invoicing, payments, cash application and collections.
Arvindh Kumar, Partner and Co-Head of EQT's Global Technology Sector Team, said EQT sees Billtrust as operating at the intersection of software, fintech and payments, sectors where EQT has deep experience, and described accounts receivable automation as underpenetrated. EQT reported approximately EUR 77 billion in assets under management as of June 30, 2022, across 36 active funds.
J.P. Morgan Securities LLC is exclusive financial advisor to Billtrust and Davis Polk & Wardwell LLP is its legal counsel. Evercore is financial advisor to EQT and Weil, Gotshal & Manges LLP is its legal counsel.
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