BlackLine paid $120 million at the deal’s closing. It will pay an additional $30 million upon meeting certain earnout criteria. The company said it funded the acquisition with existing on-hand cash, and expects the acquisition won’t affect its third-quarter earnings report.
Rimilia’s software uses artificial intelligence and machine learning to automatically collect and allocate customers’ payments so clients spend fewer days with outstanding sales. BlackLine said in a statement Rimilia’s software is naturally adjacent to its own, which automates year-end, quarter-end and month-end financial closeouts.
BlackLine President Marc Huffman, who will become chief executive on Jan. 1, said in a statement efficient cash and liquidity management is especially important during the economic crisis brought on by the coronavirus.
“This acquisition addresses that need and further expands BlackLine’s position as an indispensable platform for the office of the controller. … With accounts receivables serving as the single largest asset for most businesses, Rimilia’s ability to unlock working capital and reduce risk is top of mind for today’s controllers and CFOs,” Huffman added.
Shares of BlackLine (BL) closed Tuesday up $4.44 cents, or 5 percent, at $92.70 on the Nasdaq while that market closed lower by 1.6 percent.