An Israeli fintech is being acquired by Valley National Bancorp in a cash-and-stock deal valued at $340 million. The transaction with the fintech Bluevine is expected to close early next year.
The deal shores up Valley’s funding base, enhances its small business banking operations, and aligns with its digital and AI strategy, Valley said in a statement. Bluevine will bring Valley a scaled, high-growth digital small business platform and $2.1 billion in low-cost, digitally sourced deposits.
Expanding Internal Capabilities
Bluevine will bring Valley 180 tech staff, including employees in Tel Aviv. The fintech’s engineering, product, data science, and AI talent is anticipated to help accelerate Valley’s long-term technology strategy. Valley said its long-range plan includes the broader development of internal capabilities and less reliance on third-party software and service providers.
“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,” said Ira Robbins, Valley’s Chairman, President & CEO.
“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,” Robbins added.
Bluevine: Serving Small and Medium Sized Businesses
Co-founded in 2013 by Israeli entrepreneurs Eyal Lifshitz and Nir Klar, Bluevine is headquartered in Jersey City and serves upwards of 175,000 active small business customers across the United States. Its platform offers a suite of integrated tools combining business checking, payments, bill pay, invoicing, lending, and financial management. This year, the startup was voted Best Overall Small Business Bank by Money.com and Best Online Business Checking Account by NerdWallet.
In Tel Aviv, Bluevine has a research, development, and innovation center that powers its U.S. digital banking platform. The startup also has technology hubs in Redwood City, California; Salt Lake City, Utah; and Jersey City, New Jersey.
Bluevine has raised about $290 million in equity to date, including a $102.5 million Series F in November 2019 at a valuation of $700-$800 million, per reports.
When the Valley deal closes, Bluevine co-founder Lifshitz will join the combined company as Head of Small Business Banking.
“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,” said Bluevine CEO Lifshitz.
“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,” Lifshitz added.
After the transaction closes, Lifshitz will join Valley as Head of Small Business Banking.
Valley: Prioritizing Financial Technology, AI, and Digital Processes
“By combining Valley’s balance sheet and product capabilities with Bluevine’s digital platform and customer-acquisition engine, we can accelerate our aspiration to be the bank of choice for small businesses across the country.
“The combination also creates a compelling cross-sell opportunity to further deepen the scope of the current banking relationships across both Valley and Bluevine customer bases by delivering a broader set of products and an enhanced customer experience,” Robbins said.
Bluevine’s customers will gain access to Valley’s branch network and broader treasury management, credit, insurance, wealth and capital markets solutions, the statement said. Bluevine customers will also “benefit from a more holistic value proposition as clients of the combined organization.”
Valley said its existing small business customers will benefit from Bluevine’s suite of digital tools that integrates business checking, payments, bill pay, invoicing, lending, and financial-management capabilities into a unified experience for small businesses.
The Bluevine deal follows Valley’s $1.2 billion acquisition of Bank Leumi USA on April 1, 2022. As part of that deal, Bank Leumi Le-Israel B.M. retained an estimated 14% stake in Valley’s common stock, according to a statement from the Securities and Exchange Commission (SEC).
Terms of the Bluevine Agreement
Under the proposed transaction, Valley’s roughly $340 million price tag for Bluevine is expected to consist of about 75% cash and 25% Valley common stock, subject to the terms of the definitive agreement and customary adjustments, the statement said.
Including anticipated interoperability, the acquisition is expected to be about 8% accretive to estimated 2028 earnings per share. The transaction is also expected to “result in approximately 5% tangible book value dilution at closing, with an estimated earn-back period of approximately 3 years,” according to the Valley press release.
Transaction and Financial Information
Valley’s website includes an investor presentation with additional information about the transaction.
Cantor Fitzgerald & Co. is serving as financial advisor to Valley; Wachtell, Lipton, Rosen & Katz is serving as legal counsel to Valley. Financial Technology Partners acted as the exclusive advisor to Bluevine and its Board of Directors in the sale to Valley. Sidley Austin LLP served as legal counsel to Bluevine.
About Valley
As the principal subsidiary of Valley National Bancorp (NASDAQ: VLY), Valley National Bank is a regional financial institution with over $66 billion in assets. Founded in 1927, Valley has more than 220 branch locations and commercial offices across New Jersey, New York, Florida, Alabama, California, Illinois, Pennsylvania, and Arizona, while serving clients nationwide. Valley delivers a full range of consumer, commercial, and wealth management solutions designed to support everything from homeownership and business growth to long-term financial planning. Big enough to support complex financial needs and small enough to stay deeply connected, Valley is grounded in a relationship-led approach
focused on understanding people first. That same relationship-led approach guides Valley’s commitment to community investment and responsible corporate citizenship. To learn more, visit www.valley.com or call the Valley Customer Care Center at 800-522-4100.
About Bluevine
Founded in 2013 and headquartered in Jersey City, New Jersey, Bluevine provides an integrated suite of digital banking, payments, lending, and financial-management solutions designed for small businesses. As of June 2026, Bluevine served approximately 175,000 active small business customers and had served more than 415,000 businesses since inception. Visit www.bluevine.com for more information.
