Valley National Bancorp has entered into a definitive agreement to acquire Bluevine for approximately $340 million, a transaction designed to expand Valley’s small business banking franchise, strengthen its deposit base, and accelerate its digital and artificial intelligence strategy.
Under the proposed transaction, Valley expects to pay approximately 75% of the consideration in cash and 25% in Valley common stock, subject to the definitive agreement and customary adjustments.
The companies expect the acquisition to close in early 2027, subject to regulatory approvals and other customary closing conditions.
Bluevine, founded in 2013 and headquartered in Jersey City, New Jersey, operates a digital financial platform focused on small businesses. The company offers business checking, payments, bill pay, invoicing, lending, and financial-management tools through an integrated digital experience.
Bluevine is a financial technology company rather than a bank. Its banking services are currently provided by Coastal Community Bank, Member FDIC.
As of June 2026, Bluevine served approximately 175,000 active small business customers and had served more than 415,000 businesses since its founding.
One of the primary attractions for Valley is Bluevine’s deposit base.
Bluevine is expected to bring approximately $2.1 billion of low-cost, digitally sourced deposits to Valley. Platform-generated deposits increased at an approximately 35% compound annual growth rate from 2023 through the second quarter of 2026.
Approximately 99% of those deposits currently come from customers who are not borrowers, giving Valley what the companies view as a diversified source of core funding independent of lending relationships.
The acquisition adds a nationwide digital customer acquisition channel to Valley’s existing relationship-focused banking model.
Valley National Bank, the principal banking subsidiary of Valley National Bancorp, has more than $66 billion in assets and more than 220 branch locations and commercial offices across New Jersey, New York, Florida, Alabama, California, Illinois, Pennsylvania, and Arizona.
Combining the two organizations is intended to create opportunities on both sides of the customer base.
Bluevine customers would gain access to Valley’s broader range of financial services, including treasury management, credit, insurance, wealth management, and capital markets solutions.
Valley’s existing small business customers would gain access to Bluevine’s digital platform and integrated capabilities across checking, payments, lending, invoicing, and financial management.
The transaction also represents a significant technology investment for Valley.
Bluevine will bring approximately 180 research and development professionals and engineers to the combined company.
Those employees are primarily located in technology centers including Redwood City, California; Jersey City, New Jersey; Salt Lake City, Utah; Bengaluru, India; and Tel Aviv, Israel.
Valley said Bluevine’s engineering organization, technology architecture, and experience applying AI and data technology to small business workflows will help the bank develop more technology internally and reduce its reliance on third-party software and service providers.
Owning more of its technology infrastructure could also allow Valley to exercise greater control over the customer experience and shorten the time required to develop and launch new financial products.
The bank sees those capabilities as applicable beyond Bluevine’s traditional small business market over time.
Financially, Valley expects the deal, including anticipated synergies, to be approximately 8% accretive to estimated 2028 earnings per share.
The company also expects approximately 5% tangible book value dilution at closing, with an estimated earn-back period of approximately three years.
Following completion of the transaction, Bluevine co-founder and CEO Eyal Lifshitz is expected to join Valley as Head of Small Business Banking.
His continued involvement is intended to provide leadership continuity as Valley integrates Bluevine’s platform, technology team, and customer relationships into its broader banking organization.
For Valley, the acquisition combines several strategic objectives in one transaction: adding low-cost deposits, gaining a national digital small business franchise, expanding technology and AI capabilities, and creating opportunities to sell a broader set of financial products to Bluevine customers.
For Bluevine, becoming part of a regulated banking organization with a significantly larger balance sheet provides access to additional products and financial capacity that can support customers as their businesses become larger and more complex.
Support: Cantor Fitzgerald & Co. is serving as financial advisor to Valley, with Wachtell, Lipton, Rosen & Katz serving as its legal counsel. Financial Technology Partners is serving as exclusive financial advisor to Bluevine and its board of directors, while Sidley Austin is serving as Bluevine’s legal counsel.
KEY QUOTES:
“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. Bluevine has built an impressive franchise which has generated a diversified base of small business operating deposit relationships, a highly engaged customer community and a modern technology platform purpose-built for the needs of small businesses.”
Ira Robbins, Chairman, President And CEO Of Valley National Bancorp
“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. Together, we will be able to expand our impact while preserving the technology, customer focus and entrepreneurial culture that have driven Bluevine’s success. We look forward to joining Valley and continuing to enhance our small business banking platform.”
Eyal Lifshitz, Co-Founder And CEO Of Bluevine
