Thoma Bravo acquires Bottomline for $2.6bn
Friday 13th May 2022
Software investment firm Thoma Bravo is to acquire Bottomline Technologies (Nasdaq: EPAY), a provider of business payments financial technology in an all-cash transaction that values the company at approximately USD2.6 billion.
Thoma Bravo — a leading software and technology PE fund with a 40+ year history of providing capital and strategic support to experienced management teams. One of the world’s most active investors in cyber security companies, with a specialised set of dealmakers targeting the sector. CEO: Orlando Bravo; AUM: $114bn.
Bottomline (Nasdaq: EPAY) — a provider of financial technology that makes complex business payments simple, smart and secure. Corporations and banks rely on Bottomline for domestic and international payments, efficient cash management, automated workflows for payment processing and bill review, fraud detection, behavioural analytics and regulatory compliance solutions. Old CEO: Rob Eberle; New CEO: Craig Saks.
Key points
- The all-cash transaction values Bottomline at approximately $2.6bn. Upon completion of the transaction, Bottomline will become a privately held company.
- Shareholders will receive $57.00 per share in cash, a premium of c.42% to Bottomline’s unaffected closing stock price on 19/10/21, the last full trading day prior to the announcement of the formation of the Bottomline Board of Directors’ Strategy Committee, and a premium of approximately 41% to Bottomline’s 30-day volume weighted average price as of 19/10/21.
- The transaction, unanimously approved by the Bottomline Board of Directors, is expected to close in the second calendar quarter of 2022.
Investment Rationale
Bottomline is well positioned in an exciting and dynamic market; they are set to benefit from the large and growing B2B payments market by delivering their diverse range of products that can intelligently digitise the way businesses pay and get paid. Thoma Bravo looks to apply their operational and investment expertise in software and financial technology to support Bottomline in its next phase of growth.
Investment Objectives
Thoma Bravo aims to “continue building on Bottomline’s strong track record of consistent innovation and growth, partnering with Bottomline’s highly-experienced management team to support their vision for continued growth and unwavering focus on delighting customers.” — Brian Jaffee
To date, Bottomline has been executing against a “strategy of establishing competitive advantage with a product set designed to transform business payments for companies and financial institutions around the world” — Rob Eberle
In this partnership, Bottomline aims to leverage Thoma Bravo’s operating capabilities, capital resources, and technology industry expertise. The investment provides Bottomline with additional resources and greater flexibility to build on their leadership position, invest in continued innovation and accelerate go-to-market efforts to deliver increased value to customers.
Investment Professionals
- Holden Spaht, Managing Partner at Thoma Bravo
- Brian Jaffee, Partner at Thoma Bravo
Financial advisors
- Deutsche Bank Securities Inc. is serving as exclusive financial advisor to Bottomline.
- BofA Securities is serving as exclusive financial advisor to Thoma Bravo.
References
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