Chime to Acquire Stride Bank in $590M Deal
Fintech company Chime has agreed to acquire Oklahoma-based Stride Bank for $590 million in cash, marking a significant step toward its goal of becoming the largest provider of primary bank accounts. The acquisition will make Stride a wholly owned subsidiary operating as 'Chime Bank, N.A.' and is expected to close by mid-2027. The deal aims to strengthen Chime's financial model while maintaining its technology-driven approach. With 10.4 million active members, Chime competes with traditional banks for primary account relationships. Stride brings a national charter and $5.4 billion in assets to the table, enhancing Chime’s banking capabilities. Chime expects immediate earnings accretion from the acquisition and anticipates around $100 million in net synergies through cost reductions and expanded lending products. The transaction is valued at 1.5 times Stride's tangible book value and will be funded using Chime's existing cash reserves.
Topics: Banking Corporate Strategy Fintech