Valley National Bancorp Acquires Fintech Bluevine for $340 Million

Valley National Bancorp announced it has entered into a definitive agreement to acquire Bluevine Inc., a global digital banking platform for small businesses, for approximately $340 million. The transaction, expected to close in the second half of 2024, will be comprised of roughly 75% cash and 25% Valley common stock, subject to customary adjustments.

The acquisition aligns with Valley's strategic priorities to strengthen its funding base, expand its small business operations, and accelerate its digital and artificial intelligence (AI) strategy. Bluevine brings to Valley a high-growth digital platform, $2.1 billion in low-cost deposits acquired through digital channels, and a suite of banking, payments, credit, and financial management solutions for small businesses across the U.S.

Bluevine, founded in 2013 and headquartered in Jersey City, New Jersey, serves approximately 175,000 active small business customers. The company has raised around $290 million in equity funding and secured credit lines and debt agreements totaling approximately $770 million. In its last significant funding round, Series F in late 2019, Bluevine was valued between $700 million and $800 million.

Upon completion of the deal, Bluevine co-founder and CEO Eyal Lifshitz will join Valley as head of small business banking. The acquisition is projected to contribute approximately 8% to Valley's projected earnings per share in 2028, with an estimated payback period of three years. It is expected to cause a dilution of about 5% in tangible book value upon closing.

Valley's existing small business clients will benefit from Bluevine's digital platform, while Bluevine customers will gain access to Valley's branch network and a broader range of cash flow management, credit, insurance, and capital markets solutions. The integration of Bluevine's approximately 180 R&D and engineering staff, located in California, New Jersey, Utah, and Tel Aviv, will also accelerate Valley's technology and AI strategy, enhancing its customer experience and speed to market.