BM Technologies, Inc. (NYSE: BMTX) shares are exhibiting a substantial growth on the US stock charts today following the announcement of a definitive agreement for acquisition by First Carolina Bank (FCB). As of the latest check, BMTX stock was trading at $4.80, reflecting a remarkable rise of 49.07%. This surge signifies the market’s positive response to the acquisition news.
Acquisition Details and Shareholder Benefits
All outstanding shares of BM Technologies (BMTX) will be purchased by First Carolina Bank for $5 a share, for a total all-cash deal of about $67 million. The shares of BMTX will no longer be listed on the New York Stock Exchange when the transaction is completed, and BM Technologies will become a fully owned subsidiary of First Carolina Bank.
Based on the market price as of August 14, 2024, just before the firm revealed it had received takeover interest, this cash offer implies a startling 90% premium for BM Technologies stockholders, and a 55% premium over the trading price of BMTX on October 24, 2024. The existing President and Chief Technology Officer, Jamie Donahue, will continue to oversee the business and keep its identity.
Enhancing Banking Services for Customers
This strategic acquisition not only provides BM Technologies shareholders with substantial financial benefits but also enhances the service offerings for current customers. The partnership is poised to introduce advanced banking services and technology to all existing BMTX clients, as well as to current and prospective First Carolina Bank customers. Following the closure of the transaction, the two entities will collaborate on integrating BM Technologies into FCB’s operations, facilitating future growth initiatives.
Strategic Implications of the Merger
With over 700 campuses currently served, BM Technologies (BMTX) will significantly contribute to FCB’s deposit-gathering capabilities, enhancing its banking relationships across various educational institutions and their students nationwide. The boards of both businesses have approved the combination, and BMTX shareholders still need to approve it. Subject to standard closing conditions, the deal is expected to be completed in the first quarter of 2025.
