Investment Banking - BankMobile Technologies
Transactions | Banking
Client: BankMobile Technologies
Transaction Type: Mergers & Acquisitions
Role: Financial Advisor
BankMobile Technologies, a Subsidiary of Customers Bank, and Megalith Financial Acquisition Corp. Agree to Combine to Bring a Digital Banking Platform to the Public Market under the New Name BM Technologies
- Customers Bancorp, Inc. (NYSE:CUBI) (the “Company”) is a bank holding company located in Wyomissing, PA, that is engaged in banking and related businesses through its bank subsidiary, Customers Bank. Customers Bank is a community-based, full-service bank with assets of approximately $17.9 billion as of June 30, 2020.
- Established in 2015, BankMobile (“BMT”) is a division of Customers Bank and among the largest and fastest-growing mobile-first banking platforms in the U.S., offering checking and savings accounts, personal loans, and credit cards. BankMobile, named the “Most Innovative Bank” by LendIt Fintech in 2019, provides an alternative banking experience to the traditional model.
- Megalith Financial Acquisition Corp. is a blank check company incorporated in Delaware for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses, with a focus on the fintech or financial services industries. MFAC consummated its initial public offering on the NYSE in August 2018 and is listed under the symbol “MFAC”.
- The Company’s management has made recent strategic decisions to focus on its largest commercial lending lines of business. Management decided to divest BMT as they believe it does not fit the Company’s core commercial banking focus.
- Customers Bank is to receive cash and stock worth $140 million less the debt and certain other adjustments set forth in the merger agreement. All deposits and loans of BankMobile will remain at Customers Bank immediately after the closing of the transaction.
- Boenning served as financial advisor and rendered a fairness opinion to the Special Committee of Customers Bancorp, Inc.