BM Technologies, Inc. (NYSE American:BMTX) (“the Company” or “BMTX”), one of the largest digital banking platforms, announced it has entered into a definitive agreement to be acquired by First Carolina Bank (“FCB” or “First Carolina”) pursuant to which First Carolina will purchase all outstanding BMTX shares of common stock for $5.00 per share in an all-cash transaction with an equity value of approximately $67 million.
Under the terms of the agreement, BM Technologies stockholders will receive $5.00 per share in cash, which represents a 55% premium to the trading price per share of BM Technologies common stock as of October 24, 2024 and a 90% premium to market as of August 14, 2024, the day before BM Technologies disclosed that it had received inbound interest. Upon completion of the transaction, BM Technologies will become a wholly owned subsidiary of First Carolina Bank and shares of BM Technologies’ common stock will no longer be listed on the New York Stock Exchange. BM Technologies will continue operating under the BM Technologies name and be led by Jamie Donahue, current President and Chief Technology Officer of BMTX.
Luvleen Sidhu, Founder, Chair and CEO of BMTX 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. 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.”
Ron Day, CEO of First Carolina Bank, stated, “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.”
The merger agreement has been approved by both the Boards of BMTX and First Carolina Bank and is subject to stockholder approval by stockholders of BMTX. The parties expect the transaction to close in the first quarter of 2025, subject to the satisfaction of customary closing conditions.
Advisors
White & Case LLP acted as legal counsel to BMTX and Janney Montgomery Scott advised and provided a Fairness Opinion to the board of directors of BMTX.
