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Divvy Buy Puts Bill.com in New Market

 Bill.com will enter the spend management market with the $2.5 billion purchase of Divvy. The payments software company said this week it has agreed to the deal as it announced results for the third quarter ended March 31.

 The news followed a flurry of activity for Bill.com, including its integration with Stripe, which is expected to be available this quarter. In addition, it is working with a third party to provide electronic bill presentment so that bills from large enterprises, such as utility companies, can be entered directly onto Bill.com platform and it is working to provide the ability to automatically route payments to those vendors.

At the same time Bill.com now enables accounting firms to upload and onboard up to 200 clients simultaneously instead of individually. Lacerte says the company is also piloting a real-time payments product, Instant Transfer. The integration with Stripe will enable vendors to receive funds via debit cards.

Divvy will add significantly to Bill.com’s revenue. Bill.com CEO Rene Lacerte said it had an annual run rate of $100 million as of the March quarter, double Divvy’s run rate a year earlier.

 Bill.com's reported revenue rose to $59.738 for the most recently ended quarter, up from $41,2 million a year earlier. Its third-quarter loss of $26.7 million was more than three times the loss of $8.3 million in last year’s corresponding period as Bill.com increase operating expenses by 46 percent. '

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
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