What happened
Shares of BTRS Holdings (BTRS), better known as Billtrust, exploded sharply higher on Wednesday, soaring as much as 61.2%. As of 1 p.m. ET, the stock was still up 60.1%.
The catalyst that drove the fintech specialist higher was news the company would be taken private.
So what
Billtrust, which provides cloud-based software and integrated business-to-business (B2B) payment solutions, announced early Wednesday that it had entered into a definitive agreement to be acquired by EQT X fund, a leading global private-equity company. Billtrust shareholders will receive $9.50 per share, which represents a 64% premium compared to Tuesday's closing price and a 76% premium compared to the stock's 90-day volume-weighted share price. The all-cash deal values the company at $1.7 billion.
The deal has been approved by Billtrust's board of directors, but will require both shareholder and regulatory approval, and is expected to close in the first quarter of 2023.
"This transaction marks the beginning of an exciting new chapter for Billtrust, our customers, and employees, while providing shareholders an immediate and substantial cash value with a compelling premium," said Billtrust founder and CEO Flint Lane. "We believe B2B payments and accounts receivable continue to be ripe for massive disruption and innovation, and our partnership with EQT will provide us with greater resources and flexibility to build on our leadership position."
Now what
It's been a tough year for Billtrust shareholders. The post-pandemic hangover and the onset of the bear market punished the stock, which had lost as much as two-thirds of its value since late last year. The buyout premium, while generous, is still well below the stock's all-time high of $19 reached in early 2021.
While some shareholders are no doubt relieved at the rebound, this may not have been the best outcome, particularly considering Billtrust's long-term potential and bright future.
