TAB Bank is acquiring BAMFi’s BAM Capital Division in a $46 million deal, TAB announced on Tuesday (Nov. 26).
As part of the acquisition, BAM’s office in Dallas, Texas will be retained by TAB Bank, including both operations and staff.
This is the digital bank’s fourth acquisition of a working capital loan portfolio. BAMFi, a software provider for the secured lending space, will still own its proprietary solution FactorCloud.
“This is a great acquisition for TAB Bank, and we are very excited to welcome BAM’s customers. These new customers represent a wide range of industries including transportation, transportation brokerages, staffing, oil and gas, manufacturing, and distribution,” said Curtis Sutherland, senior vice president at TAB Bank.
He added that TAB Bank is embracing the chance to expand in the Dallas-Fort Worth market and are “pleased to welcome BAM’s staff in Dallas to our team.”
In addition to working capital lines of credit, BAM customers will be able to tap into TAB Bank’s entire sequence of corporate banking provisions and treasury management services, giving them “greater flexibility, efficiency, and cost-savings in managing their capital,” Sutherland said. “We have a long history of providing working capital solutions and support to small to medium-sized businesses and we are thrilled to extend our offerings to our new clients.”
Founded in 1998 to service the trucking industry, TAB Bank now offers custom working capital solutions to commercial enterprises across numerous industries in all stages of business life cycles.
BAMFi was founded in 2012 and offered cash management and working capital solutions for transportation, construction, oil and gas, and temporary staffing service providers. The company was recently ranked 121 on the 2019 Inc. 5000 fastest-growing companies list. It will now focus solely on its cloud-based secured lending software solution.
TAB Bank President Curt Queyrouze said in June that as a younger generation of entrepreneurs steps into the financial services market, in-person interactions with banks will shrink.
Financial institutions that invest in in-person services are likely paying significant overhead to meet the particular needs of only a small fraction of their customer bases, Queyrouze said, and are failing to invest in the future of small business banking: virtual, transparent and available on demand.
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