Big news just came off the presses for anyone who happens to be invested in BTRS (NASDAQ:BTRS). The company, which is more commonly known as Billtrust, just agreed to be acquired by EQT Private Equity, which is part of the EQT X fund. Qualifying BTRS shareholders will receive a cash payment as a result of this transaction. Consequently, BTRS stock propelled 60% higher today.
It’s not hard to see why a private equity firm would want to buy out Billtrust. As the press release points out, “Accounts receivable is broken and relies on conventional processes that are outdated, inefficient, manual and largely paper based.” Billtrust solves this problem with its efficiently automated, cloud-based software.
In other words, Billtrust makes online ordering, invoicing, collections and other processes less of a headache for modern businesses. It was almost inevitable that this future-facing, high-potential business would get bought out sooner or later.
That’s exactly what’s happening as EQT Private Equity plans to acquire Billtrust in an all-cash transaction. It’s a big-ticket deal, with Billtrust’s equity valued at roughly $1.7 billion.
What’s Happening with BTRS Stock?
Clearly, traders cast this transaction in a positive light as BTRS stock rallied 60% this morning. The shares haven’t been anywhere near the current level since late 2021.
There’s something else that Billtrust’s investors need to know, though. The press release states that Billtrust shareholders “will receive $9.50 per share in cash upon the closing of the transaction.” It then boasts that this “represents more than a 64 percent premium above the closing share price of $5.77 on Sept. 27, 2022.”
Fair enough, but $9.50 per share isn’t much higher than today’s BTRS stock price. Nonetheless, qualifying shareholders should anticipate receiving a sizable cash payment in their accounts when the buyout transaction is finalized.
Let’s not get ahead of ourselves, though. The transaction isn’t expected to close until the first quarter of 2023. Plus, it won’t happen unless the acquisition is approved by regulators and by Billtrust shareholders.
When all is said and done, we may have to say good-bye to BTRS stock as Billtrust is anticipated to become a private company. Thus, a chapter closes and a new era begins for a notable billing-software disruptor.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
