Valley National Bank to Acquire Bluevine for Approximately $340 Million

Following its merger with Bank Leumi USA, the expansion of its activities with technology companies and investment funds, and its investments as an LP in venture capital funds—including Israeli funds—Valley National Bank is taking another significant step toward establishing itself as a major fintech and technology player.

Valley National Bancorp (NASDAQ: VLY), the parent company of Valley National Bank and the acquiring entity in the transaction, announced that it has entered into a definitive agreement to acquire fintech company Bluevine for total consideration of approximately $340 million. Bluevine is a leading digital banking platform for small businesses across the United States. The company was founded by Israeli entrepreneurs Eyal Lifshitz and Nir Klar and operates a significant research and development center in Tel Aviv.

The transaction represents another milestone in Valley National Bank’s broad and consistent strategy to deepen its involvement in the technology and fintech ecosystem. In 2022, the bank completed its merger with Bank Leumi USA, following which Bank Leumi le-Israel became a major shareholder in Valley National Bancorp. The merger significantly expanded Valley National Bank’s activities with technology companies, venture capital funds and clients with ties to Israel. Since then, Valley National Bank has also expanded its role as an investor and limited partner in venture capital funds, including Israeli funds, alongside its banking activities and partnerships with technology companies.

The current acquisition marks the next step in this strategy: moving from providing banking services to technology companies, investing in funds and advancing collaborations across the ecosystem, to acquiring a technology company and integrating its capabilities into the bank. The transaction strengthens Valley National Bank’s position not only as a bank serving the technology industry, but also as an active participant within it.

Founded in 2013 and headquartered in Jersey City, Bluevine serves approximately 175,000 active small business customers across the United States. Its platform combines business checking, payments, bill pay, invoicing, lending and financial management tools. The company has approximately $2.1 billion in digitally sourced deposits, which grew at an approximately 35% compound annual growth rate from 2023 through the second quarter of 2026.

For Valley National Bank, the acquisition is intended to strengthen its core funding base, expand its small business banking operations and accelerate its digital and artificial intelligence strategy. Approximately 180 research and development professionals and engineers, based in technology hubs across the United States and in Tel Aviv, are expected to join the bank as part of the transaction. The addition of Bluevine’s engineering, product, data science and AI capabilities is expected to support the expansion of the bank’s internal capabilities and reduce its reliance on third-party software and service providers.

Ira Robbins, Chairman, President and CEO of Valley National Bank, said: “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.”

Robbins added: “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.”

Eyal Lifshitz, Co-Founder and CEO of Bluevine, said: “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.”

Upon completion of the transaction, Lifshitz will join Valley National Bank as Head of Small Business Banking.

The consideration is expected to consist of approximately 75% cash and 25% Valley National Bancorp common stock. The transaction is expected to close in early 2027, subject to standard 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.

Valley National Bank has a representative office in Israel and dedicated Hebrew-speaking teams serving private clients and supporting Israeli real estate and industrial companies, startups, investment funds and venture capital firms in their U.S. activities and expansion. The bank’s services include banking and credit solutions, as well as private banking services.

Photo: Nina Wurtzel