Why Bill Stock Sank Today
Share prices of Bill (NYSE: BILL) fell as much as 16% early Thursday following a Bloomberg report on Wednesday that the financial automation software provider for small- and mid-sized businesses (SMBs) was close to making a large cash-and-stock acquisition. Bill's shares partially rebounded to trade down around 9% as of 3:45 p.m. ET after the company denied the news.
According to the Bloomberg article published late Wednesday evening, "people with knowledge of the matter," told the financial news outlet that Bill was "in advanced talks" to acquire digital payment tools company Melio Payments. The cash-and-stock deal valued Melio at $1.95 billion, Bloomberg said. That value would put it at roughly half of Melio's $4 billion valuation in 2021 which was set after the company raised $250 million in an investment round led by venture capital firms Thrive capital and General Catalyst.
"While discussions are at a late stage," Bloomberg's sources added, "they could still be delayed or falter, and terms could change."
Source Fool.com
