Key facts
- Fintech Chime has agreed to acquire Stride Bank for $590 million.
- The acquisition aims to bring banking infrastructure in-house and expand Chime's lending business.
- Stride Bank has been Chime's partner for over seven years.
- Chime expects to keep its assets below $10 billion to remain Durbin-exempt.
- The deal is expected to generate over $100 million in net synergies.
- The acquisition is anticipated to close in the first half of 2027.
Fintech company Chime has agreed to acquire Stride Bank for $590 million in an all-cash deal, a move that will bring banking infrastructure in-house and allow the company to expand its lending business. Chime's shares surged nearly 10% in extended trading following the announcement.
Stride Bank, a nationally chartered bank founded in 1913, has been Chime's partner for over seven years. The acquisition is expected to generate over $100 million in net synergies and is anticipated to close in the first half of 2027. Chime aims to keep its assets below $10 billion for the foreseeable future, a threshold that keeps it "Durbin-exempt" and not subject to debit-card fee caps.
Analysts from Piper Sandler, William Blair, Evercore ISI, and Wolfe Research have expressed positive sentiment towards the deal, citing improved unit economics, accelerated market share growth, increased member trust, and a structural cost advantage. Chime also raised its third-quarter and full-year forecasts for revenue and core profit growth.