Enova International to Acquire Grasshopper Bancorp
Enova International, a market leader in digital lending, has made an agreement to acquire Grasshopper Bancorp, and its wholly owned subsidiary, Grasshopper Bank. The deal is estimated to be worth up to $369 million, and will be a cash and stock transaction. This acquisition is expected to create a more diversified financial services company, combining Enova’s online lending operations with Grasshopper’s digital banking platform. The entire agreement is subject to customary closing conditions, including regulatory and shareholders’ approval.
About Grasshopper Bank
Established in 2019, Grasshopper Bank is a digital bank with more than $1.4 billion in total assets and approximately $3 billion in total deposits as of 30th September 2025. It offers fintech-focused banking-as-a-service (BaaS) and API banking platforms, small business administration lending, and consumer banking services.
The Acquisition Deal
Mike Butler, CEO of Grasshopper Bank, expressed enthusiasm for the deal. He stated, “We’re thrilled to join forces with Enova, a true innovator in the use of technology and analytics in the financial services sector. This combination of enhanced digital lending and banking will enable us to serve an even broader set of customers while expanding and strengthening the product offerings for our current clients.”
Enova CFO, Steve Cunningham, also echoed Butler’s sentiments, expressing that the deal is a strategic combination that will enhance their ability to produce consistent and sustainable growth, which they believe will deliver significant financial benefits. “The additional scale and diversification from this transaction should meaningfully enhance our balance sheet strength and flexibility, leading to substantial revenue and funding synergies and significant EPS accretion,” said Cunningham.
Benefits of the Acquisition
The acquisition will bring together Enova’s online lending operations for consumers and small businesses with Grasshopper’s digital banking platform. This collaboration would create a more diversified financial services company that centralizes lending and deposit products under a national bank charter. It is also anticipated that the combined company will expand Enova’s reach across more states in the US and enhance funding diversification.
Expected Completion and Future Leadership
The acquisition deal is expected to be completed in the second half of 2026, subject to approval from the Office of the Comptroller of the Currency (OCC), a bureau within the US Treasury, and the US Federal Reserve. Upon completion, Grasshopper Bank will become a subsidiary of Enova, which will be restructured as a new bank holding company. Mike Butler will be appointed as president of Grasshopper Bank and will report to Steve Cunningham, who will be appointed CEO of Grasshopper Bank.
Projected Impact of the Deal
Enova projects that the deal would be accretive to its adjusted earnings per share by over 15% in the first year, increasing to over 25% once full synergies are achieved. Covington & Burling served as the legal advisor and Keefe, Bruyette & Woods as the financial advisor to Enova, on this transaction. Squire Patton Boggs (US) and Hogan Lovells US served as legal advisors, while Piper Sandler & Co. served as the financial advisor to Grasshopper.
Enova chairman and CEO, David Fisher, stated that acquiring and partnering with Grasshopper creates a powerful digital bank that positions them to offer a more comprehensive suite of financial solutions across more states. This will empower consumers and small businesses with the products they need to succeed. He added, “Our complementary capabilities and shared customer-first mindset mean we can grow and innovate faster, together. We’re excited to welcome the Grasshopper team to Enova.”
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