Sept 8 (Reuters) - Fintech Chime said on Tuesday it will acquire nationally chartered Stride Bank for $590 million, bringing key banking infrastructure in-house as it looks to expand its lending business.
Here are some details:
• Chime's shares, which are up over 28% this year, jumped nearly 10% in extended trading.
• The all-cash deal is expected to help Chime realize more than $100 million in net synergies and close in the first half of 2027.
• Enid, Oklahoma-based Stride was founded in 1913 and provides financial services including consumer and commercial banking. The bank has been a partner to Chime for over seven years.
• "The acquisition of Stride Bank provides Chime with a faster and more proven path to full-stack ownership versus pursuing a de novo bank charter," Chime said in a statement.
• Chime will manage Stride's balance sheet upon closing and keep its assets below $10 billion for the foreseeable future.
• San Francisco-based Chime targets everyday Americans with banking products and has managed to grow its user base by attracting younger customers through its mobile-first products
• Chime also raised its full-year revenue forecast and now expects between 26% and 27% growth, from its prior expectation of 25% to 26%.
• Morgan Stanley is serving as a financial advisor to Chime, while Piper Sandler & Co is advising Stride.
(Reporting by Utkarsh Shetti in Bengaluru; Editing by Shailesh Kuber)
