Chime has entered into a definitive agreement to acquire Stride Bank for $590 million in cash, bringing one of its longstanding banking partners directly into the financial technology company’s platform.
Stride has partnered with Chime for more than seven years.
Following completion, Stride is expected to become Chime Bank, N.A., operating as a wholly owned subsidiary of Chime.
The combination would provide Chime with its own nationally chartered bank subsidiary, integrating Chime’s technology platform and member relationships with Stride’s banking infrastructure.
Chime serves more than 10 million Active Members.
Chime expects ownership of the bank to accelerate product development by integrating its ChimeCore AI-native technology stack with Stride’s banking infrastructure, while reducing handoffs between technology and regulated banking operations.
The company also expects the combination to eliminate partner-bank fees, lower funding costs and improve unit economics.
The acquisition is expected to be immediately accretive to Chime’s earnings per share, with Chime forecasting more than $100 million in net synergies from sponsor-bank fee savings, lending expansion and lower funding costs.
The purchase price represents approximately 1.5 times Stride’s tangible book value.
Chime plans to fund the transaction using cash already on its balance sheet and does not expect an incremental capital contribution to be required.
Following closing, Chime intends to consolidate its banking activities at Stride and keep the bank’s assets below $10 billion for the foreseeable future.
Chime also raised its financial guidance. For the third quarter, the company now expects $705 million in revenue and adjusted EBITDA of $117 million to $120 million.
For full-year 2026, Chime expects revenue of $2.76 billion to $2.77 billion and adjusted EBITDA of $481 million to $489 million.
The acquisition is expected to close in the first half of 2027, subject to approvals from the Office of the Comptroller of the Currency and Federal Reserve Board and other customary conditions.
Both companies’ boards unanimously approved the transaction.
Morgan Stanley is exclusive financial adviser to Chime, with Wachtell Lipton serving as legal counsel. Piper Sandler is advising Stride financially, while McAfee & Taft is providing legal counsel.
KEY QUOTES:
“We founded Chime because mainstream America deserved better banking. Our member-aligned, technology-driven strategy will remain the same. This acquisition will make our proven model even stronger. By combining Chime’s leading brand and deep member relationships with Stride’s national charter and team, we will accelerate toward our vision to be the largest provider of primary bank accounts in America.”
Chris Britt, CEO and Co-Founder of Chime
“Stride has spent more than a century serving customers and strengthening communities. For seven years, we have seen firsthand how Chime puts members first and how seriously it takes its mission. That gives us real confidence in this combination and the future we can build together. Stride’s national bank charter and experienced team will be central to what comes next. I look forward to continuing to lead Chime Bank, creating new opportunities for our customers, communities, and employees.”
Brud Baker, Chairman and CEO of Stride Bank
