QCR Holdings in Ill. to buy family of financial firms
QCR Holdings in Moline, Ill., has agreed to buy a group of financial firms in Rockford, Ill.
The $4 billion-asset company said in a press release Tuesday that it will pay up to $6 million in cash and stock for Bates Financial Advisors, Bates Financial Services, Bates Securities and Bates Financial Group. The deal is expected to close late in the second quarter or early in the third quarter.
The businesses, which have about $700 million in assets under management, will be merged into the wealth management operations of QCR unit Rockford Bank & Trust.
QCR said it will expects to sell $1 million in common stock through a private placement to help pay for the acquisition.
The deal is expected to be 0.3% accretive to QCR’s earnings per share in the first full year after the acquisition is completed.
The acquisition “will provide [Rockford Bank] clients with additional financial services options while growing RBT’s client base,” Douglas Hultquist, QCR’s president and CEO, said in the release. “Partnering with a legacy financial adviser such as the [Bates companies] is a good strategic fit.”
Piper Jaffray and Barack Ferrazzano Kirschbaum & Nagelberg advised QCR. DeWitt Ross & Stevens advised the Bates companies.