Valley Bank agrees to acquire Bluevine for about $340m

The Valley Bank Bluevine acquisition will value the digital small-business banking platform at about $340 million, under a definitive agreement announced by Valley National Bancorp, the parent of Valley Bank, and Bluevine on September 28. The proposed consideration is expected to be 75% cash and 25% Valley common stock, according to the companies.

The transaction is expected to close in early 2027, subject to regulatory approval and other customary closing conditions. It has not yet closed.

Valley said the purchase would add approximately 175,000 active small-business customers and $2.1 billion in low-cost, digitally sourced deposits. Bluevine provides banking, payments, lending and financial-management tools for small businesses, according to the companies' announcement.

When will Valley Bank's acquisition of Bluevine close?

The companies expect the deal to complete in early 2027, provided regulators approve it and the remaining closing conditions are met. Banking Dive reported that Bluevine deposits are currently held at partner bank Coastal Community Bank and, citing Valley chief executive Ira Robbins, said they are expected to move to Valley in the first half of 2027.

Bluevine identifies itself as a financial technology company rather than a bank. It says its deposits are FDIC-insured through Coastal Community Bank and programme banks. That structure means the agreement concerns both Bluevine's customer-facing digital platform and the banking relationships supporting its deposit accounts.

What does Valley expect to gain from Bluevine?

Valley says Bluevine would provide a nationwide digital channel for winning small-business customers alongside its relationship-based banking model. Bluevine customers would gain access to Valley's branch network and its treasury-management, credit, insurance, wealth and capital-markets offerings, the companies said.

The bank also expects to add about 180 Bluevine research-and-development staff and engineers. Valley said that team would support its technology and artificial-intelligence plans, including greater internal development capability and reduced reliance on third-party software and service providers.

These are management objectives rather than completed results. Valley forecasts that, including anticipated synergies, the transaction would add about 8% to its estimated 2028 earnings per share. It also forecasts tangible book-value dilution of about 5% at closing and a roughly three-year earnback period.

Bluevine said deposits produced through its platform rose at an annualised compound rate of about 35% from 2023 through the second quarter of 2026. It said about 99% of those deposits came from customers that were not borrowers, a characteristic Valley says would diversify its funding base.

After completion, Bluevine co-founder and chief executive Eyal Lifshitz is expected to join Valley as head of small-business banking. Cantor Fitzgerald is Valley's financial adviser, while Financial Technology Partners is Bluevine's exclusive adviser, according to the companies.

This story draws on original reporting from Finextra Research.