Valley National Bancorp to Acquire Bluevine for $340M, Targeting Digital Small-Business Growth and Core Deposits
Valley National Bancorp to Acquire Bluevine for $340M, Targeting Digital Small-Business Growth and Core Deposits #
Valley National Bancorp, the Morristown, New Jersey-based holding company behind Valley National Bank, has struck a deal to acquire small-business digital banking platform Bluevine for approximately $340 million in a transaction that its leadership says will transform the bank’s funding mix and accelerate its digital strategy.
The consideration is structured as roughly 75% cash and 25% Valley common stock. The two companies announced the definitive agreement on 28 September, with closing expected in the first quarter of 2027, pending regulatory approvals.
Founded in 2013 and headquartered in Jersey City, New Jersey, Bluevine serves approximately 175,000 active small-business customers across the United States through an integrated platform offering business checking, payments, bill pay, invoicing, lending, and financial-management tools. The fintech has previously raised around $290 million in equity funding and holds recognition as the 2026 Best Overall Small Business Bank by Money.com and Best Online Business Checking Account by NerdWallet.
The core financial rationale centers on deposits. Bluevine carries approximately $2.1 billion in digitally sourced core deposits, nearly all from non-borrowing customers, that Valley intends to shift onto its own balance sheet in the first half of 2027. Those deposits, which have grown at a roughly 35% compound annual rate between 2023 and mid-2026, will replace higher-cost wholesale and brokered funding. Combined with Valley’s previously announced Providence Bank acquisition, the bank expects to add close to $3.5 billion in core deposits in total.
Valley Chairman, President and CEO Ira Robbins described the deal as directly advancing strategic priorities already communicated to shareholders, telling analysts on a conference call that Bluevine would make Valley “a much stronger and more relevant small business competitor.” Bluevine’s engineering team, which numbers around 180 R&D professionals, was also cited as a key asset for accelerating the bank’s artificial intelligence roadmap.
Valley projects the acquisition will be approximately 8% accretive to 2028 earnings per share, supported by roughly $50 million in annual pre-tax cost savings. The bank acknowledged around 5% tangible book value dilution at closing, with an estimated earn-back period of approximately three years.
For Bluevine, the deal provides access to Valley’s branch network, treasury management, credit, and capital-markets capabilities. The companies say the arrangement will let Bluevine customers move to a broader set of financial products without changing providers. Bluevine’s deposits are currently custodied at partner institution Coastal Community Bank and will migrate to the $66 billion-asset Valley after the transaction closes.
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