First Carolina Bank, a North Carolina state-chartered bank, has agreed to acquire BM Technologies, a digital banking platform, in a $67m all-cash acquisition deal.
Under the deal, BM Technologies stockholders will receive $5.00 per share. This price reflects a 55% premium over BM Technologies’ stock price as of 24 October 2024.
Upon completion, BM Technologies will operate as a wholly owned subsidiary of First Carolina Bank.
The merger, already approved by the Boards of both BM Technologies and First Carolina Bank, now awaits approval from BM Technologies’ stockholders.
The deal is due to complete in the first quarter of 2025, contingent on standard closing conditions.
Post-acquisition, BM Technologies will retain its brand and be headed by Jamie Donahue, the current president and chief technology officer. It will no longer be listed on the New York Stock Exchange.
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BMTX founder, chair and CEO Luvleen Sidhu said: “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.
“After closing, I look 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.”
Legal counsel for BM Technologies was provided by White & Case, while Janney Montgomery Scott delivered a fairness opinion to BM Technologies’ board of directors.
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 United States.
“We believe this is a game-changing combination, and we are thrilled for the employee, customer, and shareholder bases of both companies.”
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This post was originally published on here
