LendingClub has entered into a $185 million cash and stock agreement to acquire Radius Bancorp and Radius Bank.
LendingClub Corporation, a US peer-to-peer lending company, has signed a deal to acquire US bank Radius Bancorp and its subsidiary Radius Bank, a US online focused community bank (together Radius). The stock and cash transaction is valued at $185 million. The acquisition will help LendingClub to improve engagement with its existing members and offer new resources, services, and products. In addition, it will help the lending company to attract new members, deliver regulatory clarity, and improve resiliency. Importantly, it will help the company to increase and diversify earnings, grow its market opportunity, and further enhance its ability to serve members.
“LendingClub has always been a fintech innovator, and I am looking forward to leverage the strengths of both of our talented teams as we usher in a new banking era. We’re excited for our clients to have access to an industry-leading lending product and for our employees to operate our virtual banking platform with more number of resources. This is a perfect marriage, with Radius contributing a leading online deposit gathering platform, and LendingClub bringing the leading digital asset generation platform, for positioning the combined company for long-term success,” said President and CEO of Radius Bank, Mike Butler.
Acquisition expected to close in the next 12-15 months
“This is a transformational transaction that allows LendingClub to reimagine banking in a way where the success of our company is aligned with that of our customers, and that’s free from legacy systems and practices. Through the combination with Radius, our company will be creating a category-defining experience for our members that’ll enhance dramatically the earnings trajectory and resilience of our business,” said CEO of LendingClub, Scott Sanborn.
The acquisition is expected to complete in the next 12-15 months and is subject to regulatory approval and other customary closing conditions. Radius offers banking-as-a-service functionality to leading fintech companies through its platform providing open APIs and convenient features such as a personal financial management dashboard, card management, bill pay, and check deposit.