First Carolina Bank snaps up BM Technologies for $67m
First Carolina Bank has entered into a definitive agreement to acquire Banking-as-a-Service (BaaS) fintech BM Technologies (BMTX) for approximately $67 million.
BM Technologies will retain its name following the acquisition
According to the agreement’s terms, BM Technologies’ stockholders will receive $5 per share in cash, a 55% premium over the trading price of BMTX’s common stock as of 24 October 2024. The transaction, pending stockholder approval, is expected to close in Q1 2025.
Founded in 2015 and formerly known as BankMobile, BMTX claims to be “among the largest digital banking platforms” in the US.
In 2021, the company acquired First Sound Bank, a Seattle-based community bank, in a deal valued at around $23 million.
Following its acquisition by First Carolina Bank, BMTX will retain its name and will be led by current president and CTO Jamie Donahue, with the company’s founder and CEO Luvleen Sidhu saying she looks forward to “supporting Jamie and the FCB team in integrating BMTX successfully and supporting their future growth plans while exploring new opportunities for the next phase of my career”.
First Carolina Bank, a North Carolina state-chartered bank based in Rocky Mount, has $3.1 billion in assets and operates offices in North Carolina, Georgia, Virginia, and South Carolina.
Ron Day, CEO of First Carolina Bank, says that BMTX’s reach, “currently serving over 700 campuses,” provides the bank with a “nationwide deposit gathering business and the opportunity to expand banking relationships with the institutions and their students across the United States”.
