Paytech firm Global Payments is set to buy B2B payments software company MineralTree from an investor group for $500 million in cash.
Global Payments says the acquisition of MineralTree’s cloud native Software-as-a-Service (SaaS) platform will help it build out its own B2B payments offering, which includes payroll, data and analytics, access to non-card-based rails and virtual card provisioning.
The company will pay the investor group, led by Great Hill Partners, .406 Ventures and Eight Roads Ventures, with its existing credit facility and cash on hand. The deal is expected to close by the end of the year.
MineralTree’s end-to-end Accounts Payable (AP) software automates invoice capture, coding and approval and aims to mitigate fraud and risk while improving cash flow, the firm says.
It claims “more than 3,000 companies and financial institutions” use its services to digitise AP automation and payment processes.
Global Payments CEO Jeff Sloan says the paytech’s B2B offering reinforces other aspects of the business, including software and e-commerce, adding the company will look to scale its B2B initiatives more quickly following the deal.
He says: “The addition of MineralTree’s digitised payables solutions enhances our B2B product suite and expands our opportunity set in one of the largest and most underpenetrated markets in software and payments.”