Opus Bank in Irvine, Calif., has agreed to buy a pair of nonbanking businesses.
The $4.7 billion-asset company said in a press release Thursday that it will buy Commerce Escrow Co., which offers escrow services tied to commercial business and commercial real estate transactions. The company will also acquire RPM Investments, which assists with Section 1031 tax-deferred commercial exchanges.
Opus said it will pay $25 million in cash and stock for both firms. About 55% of the consideration will involve common stock. The transactions are expected to close late in the first quarter.
Commerce Escrow and RPM will operate as separate divisions within Opus, with Mark Minsky, the firms' current president, becoming senior managing director. The businesses are currently work with entities with deposit balances of more than $700 million.
"We see tremendous benefit and opportunity between our companies, clients and employees," Stephen Gordon, Opus' chairman, president and chief executive, said in the release. "Management of Opus has a strong understanding of the escrow and exchange businesses through our fiduciary banking, income property banking and commercial banking divisions."
Opus plans to use the acquired businesses to expand certain products into parts of California and Washington.
Opus was represented by Holland & Knight. Commerce Escrow and RPM were represented by Davis & Davis Law Group.