BM Technologies merges with First Sound Bank for USD 23 mln

The combined entity will be called BMTX Bank and will serve customers across the US digitally while maintaining a community banking division that will continue serving customers in the greater Seattle market. BMTX will pay up to USD 7.22 in cash for each share of First Sound Bank common stock, which amounts to approximately USD 23 million. Subject to regulatory approvals and customary closing conditions, the strategic merger is slated to close in the second half of 2022. The deal is expected to add significantly to the combined company’s revenue, EBITDA, and earnings trajectory over the next one to three years. The strategic merger will enable BMTX Bank to offer a variety of new services including direct to consumer and small business operations, marketplace lending, robo-advisory, and blockchain-based payment systems.

Founded in 2004, First Sound Bank provides commercial banking services for SMEs, not-for-profit organisations, entrepreneurs, and professional service firms in the Puget Sound region. Headquartered in Seattle, Washington, First Sound Bank has approximately USD 150 million in assets.

Formerly known as Bank Mobile, BM Technologies was launched in 2015 with a goal of providing a simple, affordable, and financially empowering, digital-first banking experience. The company went public via SPAC at the beginning of 2021, listing on the New York Stock Exchange under the ticker BMTX. BM Technologies currently has a market capitalisation of USD 145 million.