US Bank Valley National to Acquire Israeli Fintech Bluevine for $340 Million

Valley National Bancorp, the parent company of Valley National Bank, has signed a binding agreement to acquire Israeli fintech firm Bluevine for approximately $340 million, equivalent to over one billion shekels. Founded in 2013 by Israeli entrepreneurs Eyal Lifshitz and Nir Kalderon, Bluevine operates a significant development center in Tel Aviv and provides digital banking services for small businesses in the United States, serving around 175,000 active customers.

Bluevine's platform offers a comprehensive suite of financial tools, including business checking accounts, payments, bill pay, invoicing, credit, and financial management. The company holds approximately $2.1 billion in deposits generated through digital channels, which have seen an average annual growth of about 35% since 2023. The acquisition is expected to close in early 2027, pending regulatory approvals.

For Valley National Bank, this acquisition is a strategic move to expand its small business banking operations and accelerate its digital and artificial intelligence strategies. The deal will bring approximately 180 R&D professionals and engineers from Bluevine's technology centers in the US and Tel Aviv into Valley National Bank. Valley anticipates that integrating Bluevine's expertise in engineering, product development, data science, and AI will enhance its internal technological capabilities and reduce reliance on external software and service providers.

Ira Robbins, Chairman, President, and CEO of Valley National Bank, stated that the acquisition will strengthen the bank's financing capabilities, add a growth platform for small businesses, and boost its digital and AI capacities. He believes the combination of Valley's balance sheet and product capabilities with Bluevine's digital platform and customer acquisition engine will help the bank expand its reach among small businesses nationwide.

Eyal Lifshitz, co-founder of Bluevine, expressed that the company was established to provide small business owners with digital financial tools for managing and growing their ventures. Upon completion of the deal, Lifshitz is expected to join Valley National Bank as Head of Small Business Banking. The transaction will be composed of roughly 75% cash and 25% Valley National Bancorp stock.

This acquisition follows Valley National Bank's recent expansion into technology companies and venture capital funds. In 2022, the bank completed its merger with Bank Leumi USA, making Bank Leumi a significant shareholder. Valley National Bank, established in 1927, manages over $66 billion in assets and operates more than 220 branches and commercial offices across the US. The bank also maintains a presence in Israel, with Hebrew-speaking teams serving Israeli private clients and supporting Israeli companies and funds operating in the United States.