![]() ![]() NOTE: This article was originally published by Deseret Business Watch. Aaron Skonnard, Pluralsight co-founder and CEO as well asĭivvy also announced just six months earlier (December 2017) that it had closed a $7 million Seed round of funding with said investors not disclosed, although at least one source says a major seed investor was none other than Mike Murray, father of Divvy CEO, Blake.īottom line - props also to these earliest investors for having the vision and foresight of Divvy’s potential.Jeff Kearl, a Pelion Managing Director since 2019) and.Josh James, DOMO founder and CEO ( NasdaqGM:DOMO).Top among these is Pelion Venture Partners of Cottonwood Heights, Utah.Īccording to various news announcements and media reports, Pelion led Divvy’s $10.5 million Series A round of funding in May 2018 and has participated in every funding round since then, including the January 2021 Series D round of funding.Īdditionally, some notable Angel Investors from Utah (or those with deep ties to the state) also participated in that Series A funding round, including One more thing about the Divvy acquisition - several Utah-based investors (or those with serious ties to the state or the company) will also get paid as a result of the Divvy acquisition, some of which have been disclosed while others have not. That’s insane, and awesome, at the same time!īottom line, major kudos to CEO Blake and all members of Team Divvy. In other words, in four months, Divvy’s perceived value has rocketed upward by over 56% in just four months. However, no “strike price” (aka, purchase price) for these RSUs was disclosed.Īlso, as reported in the inaugural edition of Deseret Business Watch, Divvy landed a $165 million Series D round of funding on January 5, 2021, a financing that valued the company at $1.6 billion. These RSUs will vest over three years, with nearly 636,000 set aside for Blake. Under terms of the merger agreement, Divvy shareholders (namely CEO, Blake Murray) and institutional and strategic investors have agreed to six-month lockup agreements for 75% and 40% of their shares, respectively.Īdditionally, over 950,000 stock options (aka, RSUs) are being issued to certain Divvy employees as incentives to retain them as employees. (That’s a roundabout way of saying the same thing for Divvy as well.)īut how much do SMBs in the North America spend annually? The investor presentation references Mastercard research that says those same SMBs spent ~$25 trillion in 2018 of that annual spend, a small slice is available as fees for the combined /Divvy, especially for those firms that use corporate payment and credit cards. So why does this deal make sense to both parties? Apparently, adding Divvy’s products/services allows to effectively double the size of its Total Addressable Market (TAM) to 6 million U.S.-based SMBs. “… combines expense management software and smart corporate cards into a single platform (allowing its customers to) get real-time visibility into their company spend and flexible controls that prevent teams from ever going over budget.”Īdditional Thoughts & Info on the Divvy Acquisition “… software-as-a-service, cloud-based payments products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable users to connect with their suppliers and/or customers to do business, manage cash flows, and enhance office efficiency.” Seeking Alpha explains that Palo Alto, California-based provides 115,000: customers, including accounting firms and financial institutionsĪccording to Yahoo! Finance, had ~$183.59 million in revenue over the past 12 months.Over 7,500: Number of Divvy SMB customers (Small-to-Medium-sized-Businesses).Over 100%: Divvy’s Year-over-Year revenue growth.~$100 million: Annualized Divvy revenue.Some of the highlights from the investor presentation include the following data points: Securities & Exchange Commission as per terms of the Hart-Scott-Rodino Anticompetitive Measures Act. Under terms of the news release distributed yesterday (after trading on Wall Street closed), Lehi, Utah-based Divvy has agreed to be purchased for 1.875 million shares of and $625 million in cash.Īlthough the proposed merger is already approved by both parties and is expected to close by Septem(the end of ’s 2022 first quarter), it must still pass muster by the U.S. Downloaded from the investor presentation, downloaded Divvy is getting acquired for $2.5 billion in cash and stock by ( NYSE:BILL). ![]()
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