Home BancShares, parent of Centennial Bank, has agreed to acquire Florida-based Stonegate Bank in a cash-stock deal worth about $778.4m.
Stonegate has 25 branches in key Florida markets with significant presence in Broward and Sarasota counties. As at 31 December 2016, the firm managed about $3.1bn in total assets, $2.5bn in total loans, and $2.7bn in deposits.
Stonegate will merge into Centennial as part of the deal. The combined entity is expected to have around $13.5bn in total assets.
Stonegate shareholders will receive proceeds comprising $50m in cash and $699.8m in Home BancShares common stock from the transaction. Moreover, the holders of outstanding stock options of Stonegate will receive $28.6m in cash in cancellation of their options immediately prior to the merger.
The transaction is expected to be completed in the fourth quarter of 2017, subject to shareholder and regulatory approvals.
Home BancShares chairman John Allison said: “This is another ‘Triple A’ transaction for Home: accretive to earnings per share, accretive to book value and accretive to tangible book value. Our shareholders will benefit on day one as we will be stronger together. Dave Seleski, Stonegate’s CEO, leads a terrific team of bankers and we all look forward to welcoming them to Home.”