BofA's epayment service PayMode is purchased by Bottomline Technologies

Wednesday, BofA and Bottomline Technologies unveiled their intention to set up collaboration in a move to advance the growth of Bank of America’s market-leading electronic network for payment and invoice automation.

 Thus, Bottomline Technologies intends to purchase BofA’s PayMode product, operations and vendor network. PayMode is currently one of the largest and fastest-growing B2B payments networks operating.

In compliance with the agreement, BofA and Bottomline is to deliver next generation solutions for integrated payables automation, enabling businesses to capitalize on the two organizations’ shared vision for automated B2B electronic invoice and payment processing and remittance data delivery.

BofA and Bottomline Technologies decided to create a multi-year agreement targeting to operate and strengthen innovative Software as a Service (SaaS) offering. The Bank will also retain existing PayMode client relationships and join Bottomline’s Strategic Advisory Council extending its PayMode business. 

All the financial terms of the agreement, expected to close in the next 90 days, were not disclosed at this time. Bottomline expects the transaction to be accretive to its results during fiscal year ended June 30, 2010.