BMTX - BM Technologies acquires First Sound Bank at $23M

BM Technologies (BMTX +17.9%) agrees to merge with Seattle-based community bank First Sound (OTCPK:FSWA) for $23M payable in consideration. BMTX will pay up to $7.22 in cash for each share of First Sound Bank's common stock. FSWA stock last closed at $5.25, up 31% on Monday.  The combined company will be named BMTX Bank to operate on a fintech-based model with full suite of digitally-advanced banking products. "This strategic merger is expected to be significantly accretive to the combined company’s revenue, EBITDA, and earnings trajectory over the next 1-3 years," the company statement. Closing of the transaction is expected in second half of 2022. "Looking ahead, BMTX Bank expects to add direct to consumer and small business operations, marketplace lending, robo-advisory and blockchain based payment systems," says BMTX CEO Luvleen Sidhu. The merger news comes along with BM Technologies' Q3 earnings posting mixed results

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BM Technologies acquires First Sound Bank at $23M