FinWise Bancorp, parent company of FinWise Bank, entered into a membership interest purchase agreement with Business Funding Group (BFG) and four members of BFG to acquire an additional 10% ownership and voting interest in the company, bringing its total ownership to 20% upon closing. The transaction is subject to regulatory approval and other customary closing conditions.
“We are excited to have executed on one of our long-term initiatives to increase our ownership of Business Funding Group and to have done so at favorable terms by issuing FinWise stock to the BFG sellers at a premium to its current valuation,” Kent Landvatter, chairman, CEO and president of FinWise, said. “BFG has been a primary source of SBA 7(a) loans since 2014 and our relationship has been mutually beneficial for nearly a decade.
“We believe the use of our shares at a premium valuation demonstrates the strength of our business and a signal of confidence by one of our key strategic partners. As we move ahead, we will remain disciplined with our capital in order to be prepared and secure additional long-term value creation for our shareholders.”
“I am very pleased with the opportunity to deepen our relationship with FinWise through this transaction,” Jarret Prussin, CEO of Business Funding Group, said. “Our partnership has already created significant value for both of our organizations, and I believe that the expanded relationship and continued collaboration will drive further growth. Our willingness to transact at a premium valuation for FinWise shares in this transaction demonstrates our commitment to our relationship and the long-term value we see in FinWise.”
