Axos Financial, the holding company of the online lender Axos Bank, agreed to acquire Arc Technologies, a San Francisco and New York fintech that provides cash management, debt financing and AI finance software to technology and growth companies. The definitive agreement was signed through Axos's subsidiary Axos Nevada Holding and announced in the week of 6 July 2026.
Terms were not disclosed. Axos said it expected the deal to close in July 2026, subject to customary closing conditions, and that it would not have a material impact on its financial results, according to Startup Fortune.
The announcements did not say whether the Arc brand will be kept, how Arc's products will appear inside Axos, or what happens to Arc's staff beyond the statement from its chief executive.
What Arc built
Arc was founded in 2021 to give startups and growth companies one place to manage cash, get access to debt financing and run their finance operations. Its software is designed to automate routine workflows and surface insights for founders and finance teams.
The company calls its approach agentic finance. Its AI agent, Archie, moves money and reports on a business's finances, taking on treasury tasks that founders would otherwise hand to a bookkeeper or an early finance hire, Startup Fortune reported.
Arc's customers are technology and growth companies, a market Garrabrants called the innovation ecosystem. The company did not name any of them, and Lombardo said Arc would keep delivering the modern experience its customers rely on after joining Axos.
“We built Arc with the belief that businesses deserve a more intelligent and integrated financial platform.”
Why Axos is buying
Axos, based in San Diego, had about $29.2 billion in consolidated assets as of 31 March 2026, and also owns Axos Clearing and Axos Invest. It said Arc would help it serve U.S. small businesses that traditional banks underserve, and would add financial intelligence infrastructure and agentic finance tools to its AI capabilities.
Greg Garrabrants, Axos's president and chief executive, said combining Arc's product and engineering team with Axos's products, nationwide distribution and capital could produce a distinct digital banking offer for businesses across their full lifecycle.
Axos already holds deposits and makes loans; what it lacked was a software layer built for founders and finance teams at young companies. Garrabrants said Arc brought an exceptional team, a modern technology platform and deep experience serving that market.
Banking Dive noted that Arc was Axos's fourth acquisition announcement in roughly a year. Earlier deals included the $43.5 million purchase of equipment lender Verdant Commercial Capital in September 2025, an April 2026 agreement to buy $3.2 billion of IRA accounts from Capital One, and the completion in May 2026 of its purchase of Jenius Bank's $2.3 billion deposit portfolio from SMBC.
The founders and the backers
Arc was co-founded by Don Muir and Nick Lombardo. Muir ran the company as chief executive for its first four years before leaving to start a new venture called F2, and Lombardo, previously president, took over as CEO, according to Startup Fortune.
Arc's investors include Left Lane Capital, NFX, Bain Capital Ventures, Atalaya, Clocktower Technology Ventures, Torch Capital and Y Combinator. The announcements did not state how much the company had raised in total, its headcount or its number of customers.
Lombardo said joining Axos would give Arc the infrastructure, product range and scale to pursue its plans much faster.
An acquisitive digital bank
Banking Dive counted about a dozen acquisitions by Axos over the past decade. Arc differs from most of the recent ones: rather than buying loans, deposits or customer accounts, Axos is buying a software product and the engineering team that built it.
Startup Fortune said the deal closes a product gap for Axos in small business banking, but pointed to integration risk, since Axos had not said how Archie will be offered to its customers or whether the agent will keep its name. It noted that PYMNTS framed the purchase as part of Axos's push into AI-powered services for businesses.
For Arc's backers, including Y Combinator and NFX, the sale is an exit about five years after the company was founded. None of the sources reported what they will receive.
