First Carolina Bank (FCB) has agreed to acquire digital banking platform BM Technologies in an all-cash transaction, with an equity value of around $67m.
According to the terms of the definitive agreement, First Carolina Bank will purchase all outstanding shares of BM Technologies for $5 per share.
The consideration represents a premium of 55% over BM Technologies’ trading price as of 24 October 24. It is also a 90% premium compared to the market price on 14 August 2024, when the company first received acquisition interest.
First Carolina Bank CEO Ron Day said: “Currently serving over 700 campuses, BMTX gives our bank a nationwide deposit gathering business and the opportunity to expand banking relationships with the institutions and their students across the US.
“We believe this is a game-changing combination, and we are thrilled for the employee, customer, and shareholder bases of both companies.”
Based in the US, BM Technologies delivers banking services through its partner bank.
The company focuses on financial technology, offering accessible, user-friendly banking services that aim to empower Americans financially.
Known previously as BankMobile, the digital banking platform provides a more affordable, transparent, as well as consumer-friendly banking experience.
Following the completion of the transaction, BM Technologies will become a private company with its shares delisted from the New York Stock Exchange (NYSE). It will operate as a wholly owned subsidiary of First Carolina Bank.
The digital banking platform will continue to operate under its existing name, led by Jamie Donahue, who currently serves as president and chief technology officer.
BM Technologies founder, chair, and CEO Luvleen Sidhu said: “We are excited to announce this transaction with our partner bank, First Carolina.
“This transaction not only delivers a significant premium to our stockholders but will also bring enhanced banking services and technology to all current BMTX customers as well as current and future FCB customers.”
The merger agreement has been approved by the boards of both BM Technologies and First Carolina Bank.
Subject to stockholder approval from BM Technologies’ shareholders and customary conditions, the transaction is anticipated to close in Q1 2025.
For the transaction, White & Case was legal counsel for BM Technologies while Janney Montgomery Scott provided a fairness opinion to the company’s board of directors.
