Bill Holdings denies reports of deal to acquire Melio

UPDATE (November 9, 2023, 11:00 a.m. Eastern Standard Time):Bill Holdings issued a statement denying Bloomberg’s report of a deal to acquire Melio. “A news agency has published a story about a rumored acquisition between BILL and another company. While it is BILL’s general policy not to comment on market rumors or media speculation, BILL is not pursuing such an acquisition at this time,” the company said in the statement.

Bloomberg News reported earlier today that Israeli fintech unicorn Melio is set to be acquired by software services provider Bill Holdings. The Bloomberg report cited people familiar with the matter.

The transaction values ​​Melio at $1.95 billion, according to the report, which added that the cash-and-stock deal could be announced as early as this week.

Shares of Bill Holdings fell more than 13% to $54 in extended trading. Bill Holdings has a market capitalization of about $6.6 billion. While the talks are at an advanced stage, they could still be delayed or fall apart, and terms could change, Bloomberg News said.

Melio raised $250 million at a $4 billion valuation in September 2021. Founded by fintech veterans Matan Bar, Ilan Atias, and Ziv Paz, Melio is developing a technology solution that allows U.S. small businesses to digitally transfer payments to their suppliers, rather than using bank transfers or checks. Its solution has helped small businesses overcome payment transfer challenges brought on by the Covid-19 pandemic.