Financial institution CIBC acquired a 51 percent equity stake in Juniper Financial. The dollar amount of the investment, made through CIBC's U.S. subsidiary, was not disclosed. But sources familiar with the investment said it well exceeded Juniper's equity investments so far, which total $114 million. CIBC will take over the Juniper board and its chair.
Cofounded in January 2000 by FirstUSA cofounder Richard Vague, Juniper Financial operates Juniper Bank, an online financial services and credit card company. The bank has collected more than $350 million in receivables through more than 185,000 accounts. Juniper's success in attracting clientele and investors has taken some analysts by surprise in light of the challenges, such as providing access to cash and easy deposits, faced by online banks without a physical presence.