Barington Capital urges Bill Holdings to explore strategic alternatives

Barington Capital Group, L.P., a shareholder of BILL (BILL) Holdings, announced that it has sent a letter to Allie Kline, the Lead Independent Director of BILL, urging the company to reduce operating costs and calling on the Board to explore all strategic alternatives in light of BILL’s slowing fundamentals, inability to deliver operating profitability and prolonged share price underperformance. Barington believes BILL is well positioned in the growing B2B financial automation sector. However, the company’s slowing monetization trends coupled with intensifying industry competition have caused the market to question whether the company can remain a long-term, independent leader. Barington therefore urges the Board to ensure that management operates the business with greater cost discipline, so that BILL can better leverage its revenue growth into increased profitability and stronger cash flows. In addition, given strong private market valuations of companies with business models and growth profiles similar to the company and the public market’s unwillingness to assign a fair valuation to BILL’s technology leadership and large transaction network, Barington urges the Board to engage a financial advisor and form a special committee of independent directors to explore all strategic alternatives for the company, including a potential sale, merger or other business combination. Barington believes BILL would be an extremely attractive acquisition candidate for both strategic and financial buyers.