Enova, an American financial services company specialising in lending, has announced it will purchase Grasshopper Bancorp and its subsidiary Grasshopper Bank for $369 million.

Through the transaction, Enova said it will be able to increase its product offering by combining is lending capabilities with Grasshopper’s digital banking infrastructure.

Founded in 2019, Grasshopper is a full-service digital bank which has over $1.4 billion in assets under management and around $3 billion in total deposits.

Grasshopper offers digital financial solutions for commercial and consumer customers, including FinTech-focused Banking-as-a-Service (BaaS), API banking platforms, commercial lending and consumer banking.

Enova said the merger would have benefits for both customers and shareholders, including significant growth and diversification opportunities through the expansion of its ability to offer more financial products in more states.

The company added that the transaction increase financial inclusion by using its technology and allowing the combined company to serve more individuals and communities with “convenient” and “transparent” lending and banking services.

As a result of the merger, Enova also said that the company would benefit from a stronger balance sheet and flexibility from more diversified funding opportunities.

"Acquiring and partnering with Grasshopper creates a powerful digital bank that positions us to offer a more comprehensive suite of financial solutions across more states to empower consumers and small businesses with the products they need to succeed," said David Fisher, Enova's chairman chief executive. "Our complementary capabilities and shared customer-first mindset mean we can grow and innovate faster, together."

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