Thoma Bravo to Buy Bottomline Technologies for £2bn

"We see tremendous opportunity for Bottomline to continue capitalising on its unique position, particularly in the large and growing B2B payments market."

US software investment firm Thoma Bravo will acquire fintech company Bottomline Technologies for $2.6 billion (£1.96 billion).

Bottomline’s HQ is in New Hampshire in the US, but it has offices in the UK (Reading), Singapore, Australia and elsewhere.

The firm provides business payments, digital banking, financial messaging, legal spend management, fraud and financial crime management, and treasury management software.

Rob Eberle, CEO of Bottomline, says the transaction will allow the fintech firm to “benefit from the operating capabilities, capital resources and sector expertise of one of the most experienced and successful software and financial technology investors”.

“As the digital transformation of business accelerates, we see tremendous opportunity for Bottomline to continue capitalising on its unique position, particularly in the large and growing B2B payments market,” adds Holden Spaht, a Managing Partner at Thoma Bravo.

Upon completion of the transaction, Bottomline will become a privately held company.

According to its website, Bottomline has 2,000 employees and 25 offices globally. It’s not clear if there are any job cuts as part of the acquisition.

In addition, Bottomline says 600,000 companies and 1,200 banks & financial institutions use its services. It was founded in 1989.

Last month, Bottomline released its financial results for the first quarter ended 30 September 2021.

Subscription revenue was $103.5 million (£78 million) for the first quarter, an increase of 15% as compared to the first quarter of last year. While total revenues in Q1 were $123.6 million (£93.5 million), an increase of 10% as compared to the first quarter of last year. GAAP net loss for the first quarter was $4.9 million (£3.7 million).

Thoma Bravo has more than $91 billion (£68.8 billion) in assets under management as of 30 September 2021. Over the past 20 years, the firm has acquired more than 325 companies representing over $155 billion (£117.2 billion) in enterprise value. The company has offices in Chicago, Miami and San Francisco.

The transaction, which was unanimously approved by the Bottomline Board of Directors, is expected to close in Q2 2022 subject to customary closing conditions, including approval by Bottomline shareholders, receipt of approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and approval from the Financial Conduct Authority in the UK.

Upon completion of the transaction, Bottomline’s common stock will no longer be listed on any public market.

Antony Peyton
Antony Peyton
Antony Peyton is the Editor of eWeek UK. He has 18 years' journalism and writing experience. His career has taken him to China, Japan and the UK - covering tech, fintech and business. Follow on Twitter @TonyFintech.
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