Suburban Philadelphia-based digital banking platform BM Technologies, Inc. will merge with First Sound Bank as part of a $23 million acquisition, BM Technologies announced Monday (Nov. 15).
The FinTech company has signed a definitive agreement to merge with the Seattle-based community business bank. The transaction is expected to close in the second half of 2022.
BMTX Bank, the newly named company, will pay up to $7.22 in cash for each share of First Sound Bank common stock, or roughly $23 million in aggregate consideration, according to the company.
Following the merger, BMTX Bank will be a FinTech-based bank that serves customers digitally worldwide. Its community banking division will continue serving the greater Seattle area.
BM Technologies Chair, CEO and Founder Luvleen Sidhu will lead the company as chair and CEO of BMTX Bank. Marty Steele, First Sound Bank president and CEO, will lead the combined company’s community banking division and also serve as COO of BMTX Bank.
Acquiring First Sound Bank will enable BM Technologies to expand its banking-as-a-service (BaaS) offering, as well as provide direct to consumer initiatives, among other services.
“As one of the largest digital banking platforms in the country with approximately 2 million accounts, this merger allows BMTX to lead a new wave of financial innovation by enhancing its focus on technology, inclusion, easy-to-use products and customer education with the mission of creating ‘customers for life,’” Sidhu said. “Looking ahead, BMTX Bank expects to add direct-to-consumer and small business operations, marketplace lending, robo-advisory and blockchain-based payment systems to sustain our competitive advantage into the future.”
See also: Bottomline Snaps up Bora Payments To Drive STP for Paymode-X
Similarly, Bottomline Technologies finalized a $15 million cash deal to purchase Bora Payment Systems last week, according to PYMNTS. The acquisition is aimed at pushing straight-through processing (STP) for better efficiency when issuing virtual cards to vendors using Bottomline’s Paymode-X electronic payment network.
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