Axos Financial subsidiary Axos Nevada Holding is set to buy Arc Technologies, a cash management and capital markets platform for technology companies.
Financial terms of the deal were not disclosed. It’s expected to close this month, Axos said.
San Diego-based Axos said the transaction will enhance its ability to serve small businesses nationwide, which it says are “structurally underserved by traditional banks.”
“The combination of Arc’s product and software engineering capabilities with Axos’ diverse products and services, nationwide distribution, and capital resources creates a compelling opportunity to build a differentiated digital banking solution for businesses across their full lifecycle,” said Axos CEO and President Greg Garrabrants in a prepared statement.
For Arc, the deal lends product breadth and scale to offer their services to businesses, CEO Nick Lombardo said.
Axos, which as of March has about $29.2 billion in assets, is a serial acquirer. The bank has made roughly a dozen acquisitions in the last decade, including four in the past 10 months. Axos bought equipment lender Verdant Commercial Capital for $43.5 million in September, and it agreed to buy $3.2 billion in individual retirement accounts from Capital One in April.
Axos also finalized its purchase of Jenius Bank’s $2.3 billion deposit portfolio from Sumitomo Mitsui Banking Corp. in May, four months after its wind-down was announced.
