Valley National Bancorp, the parent company of Valley National Bank, said it has agreed to acquire fintech company Bluevine for about $340 million, expanding the bank’s push into technology, digital banking and the Israeli tech ecosystem.
Bluevine, founded by Israeli entrepreneurs Eyal Lifshitz and Nir Klar, operates a digital banking platform for small businesses across the United States and has a significant research and development center in Tel Aviv.
Valley Chairman, President and CEO Ira Robbins
(Photo: Nina Wurtzel)
The acquisition is the latest step in Valley’s expansion into technology and fintech following its 2022 merger with Bank Leumi USA. The 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 its banking services and partnerships with technology companies.
The Bluevine deal would take that strategy a step further, moving Valley from banking technology companies, investing in funds and developing industry partnerships to acquiring a technology company and bringing its capabilities inside the bank.
Founded in 2013 and headquartered in Jersey City, New Jersey, Bluevine serves about 175,000 active small-business customers across the United States. Its platform offers business checking accounts, payments, bill payment, invoicing, lending and financial management tools.
Bluevine has about $2.1 billion in deposits sourced through its digital platform. Those deposits grew at a compound annual rate of about 35% from 2023 through the second quarter of 2026, according to the companies.
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 research and development professionals and engineers working at technology hubs in the United States and Tel Aviv are expected to join Valley as part of the transaction. The bank said Bluevine’s engineering, product, data science and AI capabilities could help it expand its 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 said combining Valley’s balance sheet and banking products with Bluevine’s digital platform and customer-acquisition capabilities could advance the bank’s goal of becoming a leading bank for small businesses nationwide.
“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.
Lifshitz, Bluevine’s co-founder and CEO, said the companies shared a focus on serving small businesses.
“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 is completed.
The purchase price is expected to be paid about 75% in cash and 25% in Valley National Bancorp common stock. The transaction is expected to close in early 2027, subject to regulatory approvals and other customary closing conditions.
Founded in 1927, Valley National Bank has more than $66 billion in assets and operates more than 220 branches and commercial banking offices across the United States.
The bank also 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. Its services include banking and credit products as well as private banking.