Bill Holdings Inc., a prominent business-payments firm, is currently exploring various strategic options, including a potential sale of the company, in response to pressure from activist investor Starboard Value LP. Sources familiar with the situation indicate that the San Jose, California-based company is collaborating with a financial adviser to actively solicit interest from both larger industry rivals and private equity firms. This strategic review reflects the company's efforts to navigate its current market challenges.

The news of Bill's potential strategic moves significantly impacted its stock performance. Shares in Bill saw a considerable surge, climbing as much as 16% on Wednesday, and were up 12% to $52.28 in New York trading, which brought the company's market capitalization to approximately $5.24 billion. This rebound is notable given that the stock had previously experienced a substantial decline, losing 45% of its value earlier this year.

Despite the exploration of a sale, no final decision has been made, and Bill retains the option to remain an independent entity, according to the sources. The company has been contending with several challenges, including lower customer spending and heightened competition within the fiercely contested business-payments sector. A representative for Bill did not immediately respond to requests for comment regarding these developments.

The involvement of Starboard Value, led by Jeff Smith, began earlier this year with the disclosure of a stake in Bill. In October, Starboard entered into a cooperation agreement with Bill, which led to significant governance changes. As part of this agreement, Bill appointed four new independent directors to its board, one of whom was selected by Starboard. Additionally, the company committed to holding an investor day during the first half of 2026 to provide further insights into its strategic direction.

Bill's consideration of strategic options aligns with a broader trend of steady consolidation observed across the payments sector. This period has seen large industry players and buyout firms actively acquiring smaller companies. A notable example of this trend is Global Payments Inc.'s agreement to acquire Worldpay for more than $24 billion in April, marking one of the largest transactions in the sector's history. This industry environment further underscores the strategic backdrop against which Bill Holdings Inc. is evaluating its future.