US payments and billings software company Bill Holdings (NYSE: BILL) is in advanced talks to acquire Israeli digital payment solutions company Melio, “Bloomberg” reports. The report adds that Bill Holdings (parent company of Bill.com) will pay $1.95 billion for the Israeli fintech company in a cash and shares deal that could be closed before the end of the week.
RELATED ARTICLES
Melio CEO: We’ve more employees than before the layoffs
Israeli payments platform Melio raises $250m at $4b valuation
The report sent Bill Holdings share price down 11% in after-hours trading on Wall Street. The company has a market cap of $6.6 billion.
Melio has raised $517 million to date from a long list of investors including Accel, Bessemer, Gerneral Catalyst, Corner Capital and Aleph as well as major funds like Tiger Global, and Coatue, which invested in 2021 and have since sustained major losses.
A fall of more than half its valuation within two years
In its most recent financing round in September 2021, Melio raised $250 million, at a valuation of $4 billion (after money), according to PitchBook, so the potential sale would see the company lose more than half of its valuation in two years. Bill Holdings has also seen its valuation cut in half from $12 billion in 2021 to $6 billion today.
At the end of 2022, Melio CEO Matan Bar proudly told “Globes” about its ability to compete with its rival Bill.com. “At Bill.com the emphasis is on creating automation that saves time in transferring payments,” explains Bar. “The main value that Melio provides is assistance to businesses in protecting cash flow. Melio has developed a system for transferring payments between small businesses in the US, which synchronizes the payment in the business’s systems and allows postponement or spreading payments, with suppliers to that business receiving their money on time.”
Melio was founded in 2018 by Bar, CTO Ilan Atias, and Ziv Paz, who left the company in 2021.
Melio declined to comment on the report.
Published by Globes, Israel business news – en.globes.co.il – on November 9, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
