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Prosperity Bancshares to Merge with LegacyTexas Financial Group in Deal Valued at USD 2.1bn
Tuesday 18 June 2019

18 June 2019 - Texas, US-based Prosperity Bancshares, Inc. (NYSE: PB), the parent company of Prosperity Bank, has signed a merger agreement with LegacyTexas Financial Group, Inc. (NASDAQ: LTXB), the parent company of LegacyTexas Bank, pursuant to which LegacyTexas will merge with Prosperity, the company said.
Under the terms of the merger agreement, stockholders of LegacyTexas will receive 0.5280 shares of Prosperity common stock and USD 6.28 cash for each LegacyTexas share, subject to certain conditions.
Based on Prosperity's closing price of USD 67.24 on June 14, 2019, the total consideration was valued at approximately USD 2.1bn, or approximately USD 41.78 per share.
Prosperity said the combined companies create the second largest bank by deposits headquartered in Texas with increased scale that better positions the company to invest in future opportunities.
Prosperity Bancshares, Inc. is a USD 22.4bn Houston, Texas based regional financial holding company, formed in 1983. Prosperity offers a complete line of financial services including Online and Mobile Banking, Investment Services, Small Business and Commercial Loans, Mortgage Services, Retail Brokerage Services, Cash Management, as well as traditional consumer services.
LegacyTexas Financial Group, Inc. operates 42 locations in 19 North Texas cities in and around the Dallas-Fort Worth area.
As of March 31, 2019, LegacyTexas, on a consolidated basis, reported total assets of USD 9.3bn, total gross loans of USD 8.1bn and total deposits of USD 7.1bn.
LegacyTexas Financial Group, Inc. is the holding company for LegacyTexas Bank, a commercially oriented community bank based in Plano, Texas. LegacyTexas Bank operates 42 banking offices in the Dallas/Fort Worth Metroplex and surrounding counties. For more information, visit www.LegacyTexasFinancialGroup.com.
Keefe, Bruyette and Woods, A Stifel company, represented Prosperity providing a fairness opinion to its board of directors, and Bracewell LLP acted as legal counsel to Prosperity. LegacyTexas was advised in this transaction by J.P. Morgan Securities LLC, as financial advisor, and Shapiro Bieging Barber Otteson LLP, as legal counsel.
Details
Date Published: 18/06/2019
Target: LegacyTexas Financial Group
Country: USA
Deal Size: 2.1bn (USD)
Sector: Banking/Financial Services
Type: Corporate acquisition
Financing: Cash and Stock
Status: Agreed
Vendor:
Buyer: Prosperity Bancshares
Buyer Advisor: Keefe, Bruyette and Woods, Bracewell LLP
Comment:


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