GBank Financial Holdings in Las Vegas has agreed to buy BankCard Services.
The $729 million-asset GBank said in a press release that it will pay $10 million in stock for the cashless payments company, which will operate as a unit of the bank and bolster its gaming fintech division.
The acquisition, which is set to close in the second quarter, is expected to be immediately accretive to GBank’s earnings per share.
“The platform’s ability to generate fee and source noninterest-bearing deposits in today’s interest rate environment is extremely valuable,” T. Ryan Sullivan, GBank’s president and CEO, said in the release. “BCS’s proprietary intellectual property and licensing opportunities can generate a significant upside for the company.”
GBank and BankCard Services have been collaborating under a sponsorship and program management agreement since 2015. Under the program’s terms, GBank sponsors certain prepaid programs and BankCard Services has been the program manager for those programs.
Edward Nigro, BankCard Services’ founder and CEO, is executive chairman of GBank Financial.
GBank disclosed in early November that it had formed a board subcommittee comprised of four “entirely disinterested directors” to explore the merger.