US-based regional bank Pacific Premier Bancorp has signed a definitive agreement to acquire Opus Bank. The all-stock deal is valued nearly $1bn.
As agreed, Opus common stock holders are entitled to receive 0.90 shares of Pacific Premier common stock for each share they hold.
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Once complete, Pacific Premier shareholders will own around 63% of the combined firm. Opus shareholders will hold the remaining 37% stake.
Pacific Premier chairman, president and CEO Steven R. Gardner said: “The combination with Opus provides us with a meaningful presence in attractive major metropolitan markets with operational scale, a complementary set of banking products and services, and improved revenue and business diversification.
“As a result of this transaction, we believe we will be well-positioned to generate profitable growth in the future and to benefit the combined institution’s shareholders.”
Opus Bank acquisition: Benefits
Headquartered in California, Opus Bank offers commercial and retail banking services. As of 31 December 2019, the bank had $8bn in total assets. Overall, it had 46 branches across California, Washington, Oregon and Arizona.
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By GlobalDataFollowing this acquisition, Pacific Premier will have around $20bn in total assets on a pro forma basis.
Additionally, the transaction is expected to be 14% EPS accretive for Pacific Premier. It is also expected to drive operational efficiency and support revenue diversification for the acquirer.
The Opus Bank acquisition deal is slated to close in the second quarter of this year. The completion is subject to customary closing conditions including regulatory approvals and green light from Pacific Premier and Opus shareholders.
