Billtrust to become a publicly-traded company

US-based B2B order-to-cash company, Billtrust is being acquired by South Mountain Merger Corporation which is a publicly-traded special purpose acquisition company. The two companies have announced that they have undergone into a definitive business combination agreement.

The combined company will continue as a publicly listed entity with roughly $1.3 billion equity at closing which is based on assumptions.

Upon the closing of this transaction early next year, the company would change its name to BTRS Holdings Inc. and is expected to trade on Nasdaq Stock Market under a new ticker name.

Billtrust’s management team led by Flint Lane, Founder and Chief Executive Officer, Steve Pinado, President, and Mark Shifke, Chief Financial Officer, will continue to lead the Company, the press release noted.

According to the press note, the transaction reflects an implied estimated enterprise value at closing of $1.3 billion. The cash component of the purchase price to be paid to the equity holders of Billtrust is expected to be funded by South Mountain’s cash in trust (minus any redemptions by South Mountain’s existing public stockholders), and a $200 million private placement raised at $10.00 per share. The company after the transaction is expected to be debt-free with approximately $200 million in cash.

Upon other customary closing conditions include a minimum cash condition of $225 million of which $200 million has been committed via the PIPE and an incremental $22 million has been committed in the form of a non-redemption commitment from an institutional shareholder.

Citi is serving as exclusive financial and capital markets advisor to South Mountain while J.P. Morgan is serving as exclusive financial and capital markets advisor to Billtrust. Both are serving as placement agents on the concurrent private placement.