Chime to buy nationally chartered Stride Bank for $590 million, shares jump
Chime to buy nationally chartered Stride Bank for $590 million, shares jump Sept 8 (Reuters) - Fintech Chime CHYM.O 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)
((UtkarshUmesh.Shetti@thomsonreuters.com;))