ViewPoint in Texas to Buy LegacyTexas for $300M
ViewPoint Financial (VPFG) in Plano, Texas, has agreed to buy LegacyTexas Group in Plano.
The $3.4 billion-asset ViewPoint will issue 7.85 million shares of its stock, valued at $184 million on Monday, and $115 million in cash for LegacyTexas. The company said late Monday that it expects to complete the transaction in the second quarter.
LegacyTexas has $1.7 billion in assets, $1.2 billion in loans and $1.5 billion in deposits. The commercial bank also has 20 branches.
ViewPoint, which will change its name to LegacyTexas Financial after completed the deal, said the transaction should be highly accretive to earnings per share.
"This combination allows ViewPoint to accomplish many of our strategic objectives," including gaining greater scale around the Dallas area, ViewPoint President and Chief Executive Kevin Hanigan. He added that the acquisition will accelerate ViewPoint's "transition to a full-service, commercial-oriented community bank."
Separately, ViewPoint said it has terminated its share repurchase plan. The company had bought back 83,800 shares at an average price of $18.55 each.
ViewPoint was advised in this transaction by Sandler O'Neill and Silver, Freedman & Taff. J.P. Morgan Securities was financial advisor to LegacyTexas, and Bank Advisory Group rendered a fairness opinion. Hunton & Williams is acting as legal counsel to LegacyTexas.