Valley National Bancorp has signed an agreement to acquire Oritani Financial for nearly $740m through an all-stock transaction.
Under the terms of the agreement, the common Oritani shareholders will receive 1.60 shares of Valley common stock for each Oritani share.
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The deal will strengthen Valley National’s footprint in the northern New Jersey markets especially Bergen County.
Valley National Bancorp president and CEO Ira Robbins said: “This capital-enriching transaction will enable Valley to continue to focus on improving the growth profile throughout its entire franchise, while providing enhanced products, services and delivery channels to Oritani’s existing customer base.”
Valley, and its subsidiary Valley National Bank, hold around $32.5bn in assets. It has more than 200 branches across New Jersey, New York, Florida and Alabama.
On the other hand, Oritani, through Oritani Bank, has nearly $4.1bn in assets and 26 branch offices.
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By GlobalDataBesides strengthening brick-and-mortar presence, the Oritani acquisition will help Valley to bolster capital and pursue other strategic initiatives.
Oritani chairman, president and CEO Kevin Lynch said: “The infrastructure that has been assembled at Valley over the past few years will enable our customers to access a substantial product offering while still receiving the local decision making and the exceptional service they have become accustomed to at Oritani.”
Lynch will also join Valley’s boards of directors, as a part of the deal.
The Oritani acquisition is expected to close late in the fourth quarter of this year. The completion is subject to standard regulatory approvals, shareholder approvals and other customary conditions.
