Valley National to Buy Fintech Bluevine for $340 Million

Valley National Bancorp has agreed to acquire fintech company Bluevine for approximately $340 million, paid about 75% in cash and 25% in Valley common stock, the bank said.

The transaction, expected to close in early 2027 pending regulatory approvals, marks a shift in Valley's strategy: from banking technology companies and investing in venture funds to buying a technology company outright and bringing its capabilities in-house.

Who is Bluevine and what does it bring?

Founded in 2013 by Israeli entrepreneurs Eyal Lifshitz and Nir Klar, Bluevine is headquartered in Jersey City, New Jersey, and operates a digital banking platform for small businesses across the United States. The company serves about 175,000 active small-business customers.

Its platform offers:

• business checking accounts
• payments and bill payment
• invoicing
• lending
• financial management tools

Bluevine has about $2.1 billion in deposits sourced through its digital platform. According to the companies, those deposits grew at a compound annual rate of roughly 35% from 2023 through the second quarter of 2026. The company also runs a significant research and development center in Tel Aviv.

What does the deal change for Valley?

Valley said the acquisition is intended to strengthen its core deposit base, expand its small-business banking operations and accelerate its digital and artificial intelligence strategy. About 180 Bluevine R&D professionals and engineers working at technology hubs in the United States and Tel Aviv are expected to join Valley.

The bank said Bluevine's engineering, product, data science and AI capabilities could help expand in-house technology operations and reduce reliance on third-party software and service providers.

"The acquisition of Bluevine directly advances the strategic priorities we have previously communicated to our shareholders," Valley Chairman, President and CEO Ira Robbins said. "It is expected to enhance our core funding capabilities, add a proven small business growth platform and meaningfully accelerate our digital and AI capabilities."

Robbins added that the combination could advance the bank's national ambitions. "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," he said.

How does this fit Valley's Israel-linked strategy?

The Bluevine deal extends an expansion that began with Valley's 2022 merger with Bank Leumi USA. That merger made Bank Leumi le-Israel a major shareholder in Valley National Bancorp and expanded Valley's business with technology companies, venture capital funds and clients with ties to Israel.

Since then, Valley has also expanded its investments as a limited partner in venture capital funds, including Israeli funds, alongside banking services and technology partnerships.

Founded in 1927, Valley National Bank holds more than $66 billion in assets and operates more than 220 branches and commercial banking offices across the United States. The bank maintains a representative office in Israel and Hebrew-speaking teams serving private clients as well as Israeli real estate and industrial companies, startups, investment funds and venture capital firms operating or expanding in the United States.

What happens to Bluevine's leadership?

Bluevine co-founder and CEO Eyal Lifshitz said the companies share a focus on small-business customers.

"Bluevine was founded to give small business owners the financial tools and digital experience they need to manage and grow their businesses," Lifshitz said. "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."

Lifshitz is expected to join Valley National Bank as head of small business banking once the acquisition closes. If the deal clears regulators on schedule, Valley will enter 2027 with a 175,000-customer digital small-business platform and a faster route to its stated goal of becoming a leading nationwide small-business bank.