North Carolina-based First Carolina Bank recently entered into a definitive agreement to purchase Radnor-based BM Technologies (BMTX), a banking platform, for an equity value of approximately $67 million.
Under the terms of the agreement, First Carolina will purchase all outstanding BMTX shares of common stock for $5 per share. This represents a 55 percent premium on the trading price per share of BM Technologies common stock as of Thursday.
BM Technologies will become a wholly owned subsidiary of First Carolina Bank upon completion of the transaction, and will continue operating under the BM Technologies name.
Jamie Donahue, current BMTX president and chief technology officer, will lead the subsidiary.
“This transaction not only delivers a significant premium to our stockholders but will also bring enhanced banking services and technology to all current BMTX customers as well as current and future FCB customers,” Luvleen Sidhu, BMTX founder, chairwoman and CEO, said. “We are excited to announce this transaction with our partner bank, First Carolina. After closing, I look forward to supporting Jamie and the FCB team in integrating BMTX successfully and supporting their future growth plans while exploring new opportunities for the next phase of my career.”
The transaction is expected to close during the first quarter of 2025.