Cloud-based software services provider Bill.com (BILL) recently announced that it has completed the acquisition of Invoice2go, a mobile-first accounts receivable (AR) software provider, for $625 million (75% in Bill.com stock and 25% in cash).
Following the news, shares of the company declined 1.5% to close at $272.94 in extended trade.
With this buyout, Bill.com’s present accounts receivable offering will get a boost, along with its endeavor to simplify business processes.
Invoice2go shareholders received roughly 2 million Bill.com shares based on a 20-day average closing price of $237.32.
The CEO of Bill.com, René Lacerte, said, “We are thrilled to welcome the Invoice2go team to Bill.com. Together, we can more quickly advance our accounts receivable offering and accelerate our innovation agenda for small businesses. Invoice2go has a phenomenal mobile-first solution that makes it easy for businesses to engage with their customers, develop bids, send invoices, and get paid faster.” (See Bill.com stock chart on TipRanks)
Recently, BTIG analyst Matthew VanVliet reiterated a Buy rating on the stock. The analyst, however, raised the price target to $290 from $240, which implies upside potential of 4.6% from current levels.
According to the analyst, the company’s robust fourth-quarter results were an encouraging sign for the future and the acquisition of Divvy is likely to be beneficial in the long run.
Consensus among analysts is a Strong Buy based on 11 Buys and 1 Hold. The average Bill.com price target of $263 implies downside potential of 5.1% from current levels.
Bill.com scores an 8 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 177% over the past year.
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