Fintech BM Technologies, first fusion of soundbanks
The FinTech company has signed a definitive agreement to merge with the Seattle-based community investment bank. The transaction is expected to be finalized in the second half of 2022.
BMTX Bank, the newly named company, will pay up to $ 7.22 in cash for each common share of First Sound Bank, or about $ 23 million in total consideration, according to the company.
As a result of the merger, BMTX Bank will be a FinTech-based bank that will serve customers digitally around the world. Its community banking division will continue to serve the greater Seattle area.
President, CEO and Founder of BM Technologies Luvleen sidhu will lead the company as Chairman and CEO of BMTX Bank. Marty Steele, President and CEO of First Sound Bank, will lead the community banking division of the combined company and will also be COO of BMTX Bank.
The acquisition of First Sound Bank will allow BM Technologies to expand its banking as a service (BaaS) offering, as well as provide direct consumer initiatives, among other services.
“As one of the largest digital banking platforms in the country with approximately 2 million accounts, this merger enables BMTX to lead a new wave of financial innovation with a greater focus on technology, inclusion, easy-to-use products; and educating customers with the mission of creating “customers for life,” Sidhu said. “Going forward, BMTX Bank plans to add direct-to-consumer and small business transactions, market lending, automated advice and blockchain-based payment systems to maintain our competitive edge going forward. “
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