Private equity firm Thoma Bravo is to buy business payments technology house Bottomline for $2.6 billion in cash.
Under the terms of the agreement, Bottomline shareholders will receive $57.00 per share in cash, which represents a premium of approximately 42% to its closing stock price on October 19, 2021, when Bottomline's directors decided to put the firm in the shop window.
Corporations and banks use Bottomline's services for domestic and international payments, cash management, automated workflows for payment processing and bill review, and fraud detection.
In its first quarter results in November, Bottomline posted $123.6 million in revenue, ten percent up on the previous year, as the B2B payments market continued to thrive. Subscription revenue was $103.5 million for the first quarter, an increase of 15% as compared to last year's Q1.
Joe Mullen, chairman of the Bottomline board, says: “The Bottomline Board of Directors regularly evaluates opportunities to enhance shareholder value. Following a thorough process to review strategic alternatives, we are confident that this transaction with Thoma Bravo provides a compelling opportunity to deliver immediate and certain cash value at a meaningful premium to Bottomline shareholders, as well as significant long-term benefits for customers, channel partners and employees.”