Green Dot inks deals splitting bank, fintech business

Group 1 - Green Dot has been exploring strategic alternatives since March due to shrinking profit margins and reported a loss of $26.7 million for 2024 [3] - The company has entered into acquisition agreements with Smith Ventures and CommerceOne Financial Corp, with Smith Ventures acquiring Green Dot's nonbank fintech business for $690 million in cash [6] - Green Dot shareholders will receive a minimum of $14.23 per share, with shareholders owning about 72% of the combined company post-transaction [5] Group 2 - The acquisition will involve $470 million distributed to Green Dot shareholders, $155 million invested into the bank as a capital infusion, and $65 million allocated to pay off debt [6] - The transactions are expected to close in the second quarter of 2026, pending regulatory approval [6] - CommerceOne and Green Dot Bank will form a publicly traded bank holding company that will serve as the exclusive issuing bank for the fintech [6]