FinWise Bancorp announces additional ownership stake in Business Funding Group (BFG)
Murray—FinWise Bancorp (NASDAQ: FINW) (“FinWise” or the “Company”), parent company of FinWise Bank (the “Bank”), today announced that it has entered into a membership interest purchase agreement with Business Funding Group, LLC (“BFG”) and four members of BFG (“Sellers”), in which FinWise will acquire an additional 10% ownership and voting interest in BFG, bringing the 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,” stated Kent Landvatter, Chairman, Chief Executive Officer and President of FinWise. “BFG has been a primary source of SBA 7(a) loans since 2014 and our relationship has been mutually beneficial for nearly a decade.”
Mr. Landvatter continued, “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.”
Jarret Prussin, CEO of Business Funding Group stated, “I am very pleased with the opportunity to deepen our relationship with FinWise through this transaction. 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.”
About FinWise Bancorp
FinWise Bancorp is a Utah bank holding company headquartered in Murray, Utah. FinWise’s wholly-owned subsidiary, FinWise Bank, is a Utah state-chartered FDIC-insured bank. FinWise currently operates one full-service banking location in Sandy, Utah. FinWise is a nationwide lender to and takes deposits from consumers and small businesses. Learn more at www.finwisebancorp.com.
About Business Funding Group
Business Funding Group, headquartered in Stamford, Connecticut, was founded in 2011 and focuses on providing a wide range of creative financing solutions to businesses in all stages of their growth.
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