Iberiabank to acquire Sabadell United Bank for $1bn
Iberiabank (IBKC) has entered into an agreement to acquire Sabadell United Bank from Banco de Sabadell in a cash and stock deal worth $1.025bn.
Under the terms of the agreement, Sabadell United will be acquired for $803m in cash and approximately 2.61 million IBKC shares.
The transaction is expected to be completed in the second half of 2017. It is subject to customary closing conditions, including the receipt of required regulatory approvals.
IBKC expects to finance a part of the cash portion of the transaction through a public common stock offering of approximately $500m.
IBKC president and chief executive officer Daryl G. Byrd said: “Sabadell United delivers compelling long-term strategic value to IBERIABANK by complementing our existing Florida franchise.
“With this acquisition, our Company will have a meaningful presence in each of the five largest markets in the Southeast, further solidifying our status as a premier Southeastern banking franchise."
Headquartered in Miami, Florida, Sabadell United Bank offers a banking and wealth management services to corporate and individual customers through its 26 branch locations located in Dade, Broward, Palm Beach, Hillsborough, Sarasota, and Collier Counties, in Florida.
As of 31 December 2016, Sabadell United had total deposits of $4.4bn. It reported net income of $49m for 2016.
IBKC is a financial holding company with 304 combined locations, including 199 bank branch offices and three loan production offices in Louisiana, Arkansas, Alabama, Tennessee, Texas, Florida, and Georgia.
While Goldman Sachs and UBS Investment Bank served as financial advisors to IBKC in the transaction, Simpson Thacher & Bartlett served as legal advisor.
Image:As of 31 December 2016, Sabadell United had total deposits of $4.4bn. Photo courtesy of stockimages/FreeDigitalPhotos.net.