Fintech heavyweight Green Dot Corp. announced Monday that it has struck a $1.1 billion acquisition agreement with Smith Ventures and CommerceOne Financial Corp., setting off a high-stakes restructuring that blends the worlds of digital banking, private equity, and embedded finance.
A Complex Two-Stage Transaction
Under the plan, Green Dot shareholders will receive $8.11 in cash plus 0.2215 shares of a new publicly traded bank holding company that will absorb CommerceOne’s existing operations. After that step, Smith Ventures will purchase Green Dot’s non-bank fintech assets from CommerceOne for $690 million in cash, according to Monday’s announcement.
Three major law firms architected the deal:
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Wachtell Lipton Rosen & Katz advised Green Dot
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King & Spalding LLP represented Smith Ventures
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Sullivan & Cromwell LLP counseled CommerceOne
Green Dot’s Fintech Footprint
Founded in 1999, Green Dot operates as both a fintech platform and registered bank holding company. Its offerings—from prepaid cards to digital banking tools like Go2bank—reach consumers through a national network of more than 90,000 retail distribution and cash-access locations.
Smith Ventures says it plans to privatize Green Dot’s non-bank fintech operations, spinning them into an independent company focused on embedded finance and next-generation payment solutions.
