Bank of America sells B2B e-payment and invoice business to Bottomline

Bank of America sells B2B e-payment and invoice business to Bottomline

Bank of America is selling its business-to-business electronic payment and invoice network, PayMode to Bottomline Technologies as part of a multi-year agreement with the vendor. Financial terms were not disclosed.

Bottomline is acquiring the SaaS PayMode product, operations and vendor network. The bank will continue to market the offering to new clients, retain existing client relationships and join Bottomline's strategic advisory council.

The bank will also have an equity interest in the company via warrants for one million Bottomline shares.

Around 550 Bank of America clients currently use PayMode for their payables automation and 80,000 suppliers receive electronic payments and comprehensive remittance data.

Under a "long-term" agreement, Bottomline will now provide PayMode service and support for Bank of America and its clients, while also offering it to its own customers and other channels.

Bottomline says its experience with SaaS, including its advanced invoice management workflow, global payment platforms and cash management offerings will benefit the business.

Dub Newman, global product management executive, Bank of America, says: "This deal ensures clients will receive the same high level of service they expect from the PayMode service into the future. After a thorough evaluation, we concluded that working with Bottomline will accelerate the growth and capability of PayMode and enable us to quickly deliver an even more compelling offering to our clients."

Rob Eberle, president and CEO, Bottomline, adds: "We believe that this arrangement will significantly accelerate our strategic plan and business model, while firmly establishing Bottomline as a leading player in financial supply chain automation."

The deal is expected to close in the next 90 days. Bottomline says the transaction should be accretive to its results during fiscal year ended 30 June, 2010.

In June Bank of America outsourced its merchant processing to a new joint venture company established with First Data.

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