Valley National Bank is set to acquire Israeli-founded fintech Bluevine for approximately $340 million, in a deal that will give the U.S. bank a digital platform serving approximately 175,000 small businesses while bringing roughly 180 engineers and other technology professionals into the bank. The transaction is also expected to accelerate Valley's digital and artificial intelligence strategy.
Valley National Bancorp, the parent company of Valley National Bank and the acquiring entity, said the deal represents the latest step in its broader strategy of expanding its presence in the technology and fintech ecosystem. The bank has increased its involvement with technology companies and investment funds since its 2022 merger with Bank Leumi USA, after which Bank Leumi became a major shareholder in Valley National Bancorp.
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(Valley Bank)
The merger significantly expanded Valley National Bank's activities with technology companies, venture capital funds and clients with ties to Israel. The bank has since expanded its role as a limited partner in venture capital funds, including Israeli funds, alongside its banking relationships and partnerships with technology companies.
The Bluevine acquisition takes that strategy a step further, moving Valley from providing banking services to technology companies and investing in funds to acquiring a technology company and integrating its capabilities directly into the bank. The deal is intended to strengthen Valley's funding base, expand its small business banking operations and accelerate its digital and AI strategy.
Founded in 2013 and headquartered in Jersey City, New Jersey, Bluevine serves approximately 175,000 active small business customers across the United States. Its platform combines business checking, payments, bill pay, invoicing, lending and financial management tools. The company has approximately $2.1 billion in digitally sourced deposits, which grew at an approximately 35% compound annual growth rate from 2023 through the second quarter of 2026.
Bluevine, which was founded by Israeli entrepreneurs Eyal Lifshitz and Nir Klar, has raised approximately $290 million in equity to date, alongside credit lines and debt facilities totaling around $770 million. In its last major funding round, a Series F in late 2019, the company was valued at approximately $700 million to $800 million. Upon completion of the transaction, Lifshitz will join Valley as Head of Small Business Banking.
The acquisition will also give Valley a digital customer-acquisition channel across the United States, complementing its long-standing relationship-based banking model. Bluevine customers will gain access to Valley's branch network and a broader range of financial services, including cash-flow management, credit, insurance, wealth management and capital markets solutions. Valley's existing small business customers, meanwhile, will gain access to Bluevine's digital platform, which integrates checking, payments, bill pay, invoicing, credit and financial management capabilities into a single solution.
The deal is expected to bring approximately $2.1 billion in low-cost deposits sourced through digital channels into Valley's funding base, with the companies intending to continue growing those deposits. Including anticipated synergies, the acquisition is expected to contribute approximately 8% to Valley's projected earnings per share in 2028. At closing, however, the transaction is expected to result in tangible book value dilution of approximately 5%, with an estimated earn-back period of about three years.
Ira Robbins, chairman, president and CEO of Valley National Bank, said: "The acquisition of Bluevine directly advances the strategic priorities we have previously communicated to our shareholders. It is expected to enhance our core funding capabilities, add a proven small business growth platform and meaningfully accelerate our digital and AI capabilities."
Robbins added: "By combining Valley's balance sheet and product capabilities with Bluevine's digital platform and customer-acquisition engine, we can accelerate our aspiration to be the bank of choice for small businesses across the country."
Eyal Lifshitz, co-founder and CEO of Bluevine, said: "Bluevine was founded to give small business owners the financial tools and digital experience they need to manage and grow their businesses. Valley shares that commitment and brings the balance sheet capacity, relationship banking expertise and broader capabilities necessary to support our customers through every stage of their journey."
Founded in 1927, Valley National Bank has more than $66 billion in assets and operates more than 220 branches and commercial banking offices across the United States.