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March 31, 2021updated 07 Apr 2021 11:04am

Banking market weekly snapshot: deals galore in the US

By Hannah Wright

From the 21 March 2021 to 27 March 2021, there were 31 deals across the banking industry. This was a significant increase from the previous week which saw a total of 22 transactions. Amongst the deals, there were 21 acquisitions, 6 asset transactions and 4 mergers.

Most notably, Israel-based ironSource announced its merger with US-based special acquisition firm, Thoma Bravo Advantage, for a value of $11.1bn on 21 March 2021.

Total consideration to ironSource shareholders will be $10bn, which is expected to be comprised of $1.5bn in cash consideration and a majority of the shares of the combined company.

ironSource is a software firm which focuses on developing technologies for app monetization and distribution, with its core products focused on the app economy.

The transaction, which has been approved by the Boards of Directors of ironSource and Thoma Bravo Advantage, is expected to close in the second quarter of 2021, subject to customary closing conditions.

Upon completion of the transaction, the combined company will continue to operate as ironSource. Goldman Sachs, Jefferies LLC and Citigroup Global Markets are serving as financial advisors to ironSource. Latham & Watkins LLP and Meitar Law Offices are serving as legal advisors.

On 23 March, Australian-based Computershare acquired $750m of assets of the US Corporate Business of Wells Fargo in the US. Computershare engaged in transfer agency and share registration, employee equity plans, mortgage servicing, proxy solicitation and stakeholder communications.

The transaction is expected to close in the second half of 2021, subject to regulatory approvals.

Also in the US, Pacific Mercantile Bancorp entered into a definitive agreement and plan of merger under which Pacific Mercantile will merge into Banc of California in an all-stock transaction valued at approximately $235m.

Under the terms of the definitive agreement, which was approved by the Board of Directors of both companies, holders of Pacific Mercantile common stock will receive 0.5 shares of Banc of California common stock for each share of Pacific Mercantile common stock they own.

Existing Banc of California stockholders will own approximately 81% of the outstanding shares of the combined company and Pacific Mercantile shareholders are expected to own approximately 19%.

One day later, also in the US, Seacoast Banking Corp of Florida, regional bank holding company, acquired Legacy Bank of Florida, a provider of financial services for $102.2m.

Under the terms of the merger agreement, Legacy Bank shareholders are expected to receive 0.1703 shares of Seacoast common stock for each share of Legacy Bank common stock they own. The exchange ratio for the transaction is fixed, which means that the transaction value will fluctuate as a result of changes in Seacoast’s stock price.

Based on Seacoast’s closing price of $35.53, the Legacy Bank transaction, including the exchange of Legacy Bank options, is valued at approximately $102.2m or $6.05 per share.

The transaction is expected to close in the third quarter of this year. Piper Sandler served as financial advisor and Alston & Bird served as legal counsel to Seacoast.


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