Axos to acquire AI fintech Arc Technologies, targeting underserved small businesses
What's the deal? Axos FinancialDealroom has a profile for this one. Try Dealroom → has agreed to acquire ArcDealroom has a profile for this one. Try Dealroom →, a financial technology platform for technology and growth companies, through its subsidiary Axos Nevada Holding. The deal is expected to close in July 2026, subject to customary closing conditions. Terms were not disclosed.
Who are they? Founded in 2021, Arc provides integrated cash management, capital markets, and AI-powered financial software through a single platform that helps businesses manage cash, access debt financing, and streamline operations. It is based in San Francisco and New York, backed by investors including Left Lane CapitalDealroom has a profile for this one. Try Dealroom →, NFX, Bain Capital Ventures, and Y Combinator.
Axos, listed on the NYSE under "AX," held roughly $29.2 billion in consolidated assets as of March 31, 2026. It is the holding company for Axos Bank, Axos Clearing, and Axos Invest.
What's the endgame? Axos expects the deal to strengthen its reach among the millions of US small businesses it says are underserved by traditional banks. The acquisition also expands its AI capabilities through Arc's financial intelligence infrastructure and agentic finance tools built to automate workflows and deliver insights.
What are they saying? "The combination of Arc's product and software engineering capabilities with Axos' diverse products and services, nationwide distribution, and capital resources creates a compelling opportunity to build a differentiated digital banking solution for businesses across their full lifecycle," said Greg GarrabrantsDealroom has a profile for this one. Try Dealroom →, president and chief executive officer of Axos Financial.
Nick LombardoDealroom has a profile for this one. Try Dealroom →, chief executive officer and co-founder of Arc, said joining Axos gives the company "the infrastructure, product breadth, and scale to pursue that vision significantly faster while continuing to deliver the modern experience our customers rely on."
The signal: The deal shows a traditional bank buying AI-native fintech infrastructure rather than building it, folding startup engineering talent into an established balance sheet to court business customers across their lifecycle.
Read more: Yahoo Finance
Image credit: Generated with Gemini
