Business Payments Firm Bill Holdings Is Exploring a Sale

(Bloomberg) — Bill Holdings Inc., the commercial payments company under pressure from activist investor Starboard Value LP, is exploring options including a potential sale, people familiar with the matter said.

The San Jose, Calif.-based company is working with a financial advisor to solicit interest from larger industry rivals and private equity firms, according to the people, who asked not to be identified because the details are private.

Bill shares, which rose as much as 16% on Wednesday, rose 12% to $52.28 at 12:39 p.m. in New York trading, giving the company a market value of about $5.24 billion. The stock had previously lost 45% of its value this year.

Sources said no final decision has been made and Bill may choose to remain independent. Bill’s representative did not respond to a request for comment.

Bill, which operates payments and expense management services for hundreds of thousands of small and medium-sized businesses, is struggling with low customer spending and intense competition.

Starboard, run by Jeff Smith, signed a collaboration agreement with Bill in October after announcing its stake earlier this year. Bill appointed four new independent directors, one of which is Starboard’s pick, and said he would hold an investor day in the first half of 2026.

Bill is exploring options amid a steady period of consolidation in the payments industry, where large players and buyout companies are snapping up smaller firms. Global Payments Inc. agreed to acquire Worldpay for more than $24 billion in April, in one of the industry’s largest-ever transactions.

–With help from Jenny Surane.

(Update with shares in third paragraph.)

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