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Billtrust set for rapid return to PE ownership with $1.7bn EQT buyout

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Automated payments specialist Billtrust is set to return to private equity ownership, less than two years after becoming a Nasdaq-listed company through a SPAC merger.

Buyout giant EQT has agreed a $1.7bn take-private deal for the business, which provides cloud-based B2B accounts receivable automation and integrated payments.

The business was previously financed by Goldman Sachs Private Capital Investing and Bain Capital Ventures. It joined the Nasdaq in January 2021 through a merger with the South Mountain Merger Corp SPAC at a $1.3bn valuation.

Billtrust’s share price moved as high as $16.90 in February of last year, but had slumped to less than $5 per share three months ago.

EQT’s offer is a 64% premium above the closing share price of $5.77 on September 27, and more than a 76% above the trailing 90-day volume weighted average stock price for the period ended September 27.

Billtrust founder and CEO Flint Lane said, “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.”

Arvindh Kumar, partner and co-head of EQT’s global technology sector team, said, “The Billtrust platform features modern solutions, a compelling value proposition, and, like EQT, a commitment to innovation and transformation in the digital era.

“Additionally, the company operates at the intersection of software, fintech, and payments – sectors in which EQT has deep familiarity and a track record of success.

“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.”

The deal is expected to close in the first quarter of next year.

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