Green Dot, an American financial technology and bank holding company, will be split into two entities, Smith Ventures will acquire and privatize Green Dot’s non-bank fintech operations for $690M, while CommerceOne Financial will acquire Green Dot Bank and form a new publicly traded bank holding company. Green Dot shareholders will receive $8.11 in cash plus shares in the new bank, valuing the deal at $825M–$1.1B, and the bank will become the fintech’s exclusive issuing partner under a seven-year agreement. The restructuring separates the embedded-finance business from banking, giving each entity clearer focus, stronger capital positions, and expanded growth opportunities in BaaS, sponsor banking, and embedded finance.

Green Dot Corp. Announces Strategic Transactions with Smith Ventures and CommerceOne Financial Corp.