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Divvy, a Utah financial tech firm, is acquired by Bill.com for $2.5 billion

Draper-based Divvy is one of five so-called “unicorn startups” based in Utah.

(Logos courtesy of Bill.com and Divvy) Bill.com, based in San Jose, Calif., has acquired the Draper-based financial tech company Divvy, for approximately $2.5 billion, the companies announced on Thursday, May 6, 2021.

There will be one less “unicorn” roaming Utah’s tech world, as Draper-based financial technology company Divvy has been acquired by California-based Bill.com.

The deal is worth about $2.5 billion — approximately $625 million in cash, and $1.875 billion in Bill.com common stock — according to a statement from Bill.com, released Thursday.

The phrase “unicorn startup” was coined because billion-dollar private startup companies are rare. According to the business analytics firm CB Insights, there are 670 “unicorns” worldwide. Five of them, including Divvy, are based in Utah.

Of the other four, three are headquartered in Lehi: financial tech firm MX Technologies (valued at $1.9 billion), artificial intelligence company XANT ($1.65 billion), and internet software and services provider Podium ($1.5 billion). The fourth, cybersecurity company Venafi, is based in Salt Lake City and valued at $1.15 billion.

Divvy had been estimated to be worth $1.6 billion, according to CB Insights.

The acquisition must be approved by the boards of directors of both companies, and is subject to regulatory approvals and other closing conditions. Bill.com expected the deal to be made final before Sept. 30.

Divvy sells an online tool to allow businesses to manage their company credit cards, expense reports, budgeting and invoices. Bill.com, based in San Jose, is a provider of cloud-based software to let small and medium-sized businesses handle transactions like invoices and payments.

The value of Bill.com Holdings Inc. dropped 7.88% on the New York Stock Exchange on Monday, to $142.07 per share. That is still $2.70, or 1.9%, higher than the closing price Wednesday, before the deal was announced.

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