A startup from Utah has agreed to one of the biggest startup exits seen in the region, strengthening the state of Utah’s appeal as a locality for building successful technology companies. That startup is Divvy, an expense management platform for small businesses.

• Divvy’s acquirer is Bill.com, a provider of cloud-based accounting software. It’s traded on the public markets with a current market value of nearly $11bn.

Details:

• Bill.com has agreed to acquire Divvy for a sum of $2.5bn to be paid with a mix of cash and stock. The acquisition is ideal and strategic to Bill.com, giving it a fast-growing startup in its field of accounting software to latch onto.

• Bill.com is paying $625mn in cash and $1.9bn in stock to buy Divvy, summing up to $2.5bn. It’s the company’s biggest acquisition to date, and the deal is expected to be finalized in Q3′ 21.

Highlights:

• Divvy is a five-year-old startup based out of Utah, a state that’s positioned itself stronger in recent years as a hub for growing and building successful tech companies. In recent years, the state has seen its fair share of big exits from local tech startups such as Domo (IPO), Galileo (sold to SoFi), and Qualtrics (sold to SAP, then IPO).

• A $2.5bn exit for Divvy adds to the landmark tech startup exits in the state and strengthens its presence as a key tech hub outside major ones like California and New York.

• Divvy is backed by venture funding to the tune of over $400mn. Its last financing round earlier this year valued the startup at $1.6bn.

• Divvy’s investors include the likes of PayPal Ventures, Insight Partners, Acrew Capital, and Schonfeld Strategic Advisors. A $2.5bn exit for the startup is one that should get these investors celebrating, for at least being over 50% of Divvy’s valuation of $1.6bn.

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