BankMobile Technologies has entered into a definitive merger agreement with Megalith Financial Acquisition Corp., a special purpose acquisition company. BankMobile, which has an office in New Haven, offers a digital banking platform and is currently a subsidiary of Pennsylvania-based Customers Bank.
Upon closing of the transaction, the combined company will operate as BM Technologies Inc. and expects to be listed on the NYSE. The transaction reflects an enterprise value for the company of $140 million, according to a statement from BankMoblie.
All BMT-serviced deposits and loans will remain at Customers Bank after the transaction closes. BM Technologies will then be a financial technology company that connects banks and business partners through its digital banking platform.
With over 2 million accounts, BankMobile has one of the largest digital banking platforms in the U.S. Launched in 2015, BankMobile provides its platform to colleges and universities through BankMobile Disbursements, which reaches approximately one in every three college students in the country, according to a statement.
BankMobile recently announced an agreement with Google to introduce digital bank accounts for its customers.
“We are thrilled to partner with MFAC to become a public company,” BankMobile CEO Luvleen Sidhu said in a statement. “In an era when digital banking continues to expand, we look forward to building our business over the coming years and taking advantage of all strategic opportunities.”
A.J. Dunklau, CEO of MFAC, said in a statement that digital banking platforms, or neobanks, have grown rapidly “as many customers search for less burdensome access to banking services.”
“We believe that BankMobile’s approach to collaborate with distribution partners and partner banks, positions it well to continue to grow as an increasing number of non-banks are looking to offer financial services to their existing customers,” Dunklau said in the statement. “Accordingly, we believe that the opportunity to bring BankMobile to the public markets as a stand-alone company is highly attractive.”
