- Key takeaway: Buying Arc will give Axos access to thousands of early-stage and mid-market tech firms, as well as valuable AI technology the bank can use to sharpen its small business-product set.
- Supporting data: The deal comes about three months after Capital One closed its $5 billion acquisition of Brex, which has an AI-native payments platform.
- Expert quote: "Joining Axos enables us to pair our technology with direct banking infrastructure under one roof." – Arc CEO Nick Lombardo
Axos Financial in Las Vegas said Tuesday that it plans to acquire Arc Technologies, whose AI-native financial technology platform provides cash management and debt capital markets services to early-stage and mid-market technology companies.
The $29.2 billion-asset Axos believes it can build on the foundation five-year-old Arc laid to create "a differentiated digital banking solution for businesses across their full lifecycle," CEO Greg Garrabrants said in a press release.
"Arc brings an exceptional team, a modern technology platform, and deep expertise serving the innovation ecosystem," Garrabrants said. He touted the "combination of Arc's product and software engineering capabilities with Axos' diverse products and services, nationwide distribution, and capital resources."
For Axos, the deal offers access to the thousands of tech firms Arc counts as clients. It also allows the bank to acquire sophisticated AI-driven technology, including the Archie CFO agent built into Arc's cash-management service.
The move follows $682.9 billion-asset Capital One's $5 billion acquisition of Brex and its AI-native payments platform, in a deal that closed in April. Brex also featured an agent that handles tasks traditionally managed by an institution's back office.
Axos did not disclose the purchase price for San Francisco-based Arc. The buyer did not respond to an interview request by deadline Tuesday.
The deal, expected to close this month, comes about 10 months after Arc spun off its AI-powered underwriting platform as F2 AI. Don Muir, who cofounded Arc and led the company as CEO through its first four years, left to pilot F2. Co-founder Nick Lombardo, who had served as president, stepped into the CEO slot following the F2 spinoff.
"We built Arc with the belief that businesses deserve a more intelligent and integrated financial platform," Lombardo said in the press release. "Joining Axos gives us the infrastructure, product breadth, and scale to pursue that vision significantly faster while continuing to deliver the modern experience our customers rely on."
Lombardo said Tuesday on LinkedIn that he has agreed to continue leading Arc, which has raised $31 million in equity capital, for Axos.
"For years, we built great software on top of banking infrastructure we didn't control," Lombardo wrote. "Joining Axos enables us to pair our technology with direct banking infrastructure under one roof."
"For our customers, the experience today remains the same," Lombardo added.
Buying Arc adds to a string of deals by Axos that began in September. That's when Axos acquired the Cincinnati-based small- to mid-ticket equipment-finance lender Verdant Capital for approximately $43.5 million.
In May, Axos finalized the purchase of $2.3 billion in deposits from Los Angeles-based SMBC MANUBANK and its digital Jenius Bank division. Axos has also agreed to purchase another $3.2 billion in individual retirement account deposits from Capital One Financial. That transaction is expected to close in the second half of 2026.
Founded in 2000 as Bank of Internet USA, Axos has grown significantly in asset size and profitability in recent years. Its current asset size of $29.2 billion is up 23% since the end of 2024. Axos reported net income of $124.7 million for the quarter ending March 31, up 18.5% from the same period in 2025.
