Billtrust, backed by Goldman and Bain Capital, is on the block

Billtrust, provider of a payment cycle management platform, is up for sale, five sources said.

Goldman Sachs is advising on the process, the people said.

Founded in 2001, Billtrust supplies payment management software designed to automate the invoice-to-cash process for businesses. Flint Lane, CEO, started the company, which has more than 400 employees.

Teasers have gone out for Billtrust, which is selling a majority, one of the sources said. The company is expected to fetch between $600 million and $700 million, the person said.

The auction comes after Billtrust received a bid from an unknown buyer, a separate source said. “Billtrust had an inbound they were working through,” the person said.

Executives for Billtrust and Goldman could not be reached for comment.

The Lawrenceville, New Jersey-based company has many investors. It has raised $104 million in more than five rounds, according to Crunchbase.

Goldman Sachs Private Capital and Bain Capital Ventures led a $25 million round for Billtrust in 2015. In 2012, Bain Capital Ventures provided another $25 million, Buyouts said.

More recently, Billtrust collected $50 million in May 2017 in a round led by Riverwood Capital Management, Buyouts reported. Months later, Visa invested in the company.

Billtrust has already produced one exit. Edison Ventures, which invested $4 million in the company in 2006, sold its stake to W Capital Partners in May 2018. The deal produced more than a 10x return for Edison, which was Billtrust’s first institutional investor.

Billtrust has also been acquisitive. It acquired Second Phase earlier this year. Other deals include C-Tabs in 2016, Open Scan in 2014 and Best Practice Systems in 2013.

The auction is the latest in the payments sector, which has seen a trio of large transactions. Global Payments inked a $21.5 billion buy of TSYS in May. Fidelity National Information Services agreed in March to acquire WorldPay for $45 billion. And in January, Fiserv said it would buy First Data in a deal valued at $39 billion.

In smaller payments deals, InstaMed got sold to JP Morgan for more than $550 million in May. In June, H&R Block agreed to buy Wave Financial for $405 million.

Riverwood, Bain and W Capital could not immediately be reached for comment.

Action Item: Business development queries should be sent to partners@billtrust.com.