![]() Notably, does not seem to have made any other acquisitions (or at least no acquisitions worth noting by the press and private capital databases). If the sale of Divvy to was to go through, a number of well-known venture firms- New Enterprise Associates, Paypal Ventures, Insight Partners, Tiger Global Management and others-would be adding another, likely successful, exit to their portfolio. Forbes reported that, although the acquisition price is not known, has floated paying $2 billion or more for Divvy in past exploratory conversations. The startup, founded in 2016 by Alex Bean and Blake Murray, has raised $417.5 million across five publicly known funding rounds. The corporate expense management platform, as of today, is reportedly worth a pre-money valuation of $1.6 billion, according to Crunchbase. This article has been updated to reflect recent breaking newsĪccording to Forbes’ Eliza Haverstock and Alex Konrad, may announce its acquisition of Utah-based Divvy when it reports its first-quarter earnings tomorrow. 30, subject to regulatory approvals and closing conditions. The transaction is expected to close by the end of Sept. ![]() Our expanded platform will provide more automation and real-time information to SMBs, enabling them to make more informed decisions,” René Lacerte, CEO and Founder, said in a statement. “Customers have been asking us to help them with their spend management, and I am excited that together with Divvy, we can deliver on that ask, furthering our vision to transform SMB financial operations. ![]() will acquire Divvy for about $625 million in cash and $1.875 billion of. ![]() The acquisition will enable ’s offerings to be expanded to let businesses automatically manage accounts payable, accounts receivable and corporate spend. Brex, worth a multiple of the younger startup, is presumably above that has entered into a definitive agreement to acquire Divvy in a stock and cash transaction valued at about $2.5 billion, according to a press release. Ramp, for example, disclosed that it is nearly on a $1 billion spend-managed run rate. More on that shortly, but we wanted to update this article ASAP. Brex announced, in a separate release so we missed it at first, that they have put together a new service called Brex Premium that costs $49 per month. Airbase, in contrast, charges for its software.ĭon’t expect the software arms race between corporate spend startups’ unicorns to lead to more corporate spend startups deriving software revenues in addition to their current income sources each is growing their spend rapidly enough to warrant more time with their foot on the customer growth pedal over working to juice more per-customer revenue in the short-term. Far from its roots in merely offering perk-laden corporate cards to growing companies, Brex and its myriad rivals - including Utah unicorn Divvy, Airbase and others - are building software suites around their core plastic efforts to help companies manage all elements of their spending.Ī growing rift is showing in how, compared to some rivals, the categories’ largest players, including Brex, Divvy and Ramp, forgo charging for their software, content to eat off other revenue sources including interchange. The dueling rounds raised by Brex and Ramp underscore how active their product category is proving to be. According to Crunchbase data, Brex’s mid-2020 Series C valued the company at just over $3.0 billion, including the investment’s $150 million in issued equity. The new capital marks Brex’s largest fundraise to date, and was compiled at a valuation that is more than double its most recent private valuation. Mere weeks after rival corporate spend startup Ramp announced that it raised a two-part round worth $115 million at a $1.6 billion valuation, this morning Brex disclosed a $425 million Series D led by Tiger Global.
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