Prosperity Bancshares has signed a definitive agreement to acquire LegacyTexas Financial Group for about $2.1bn.
Pursuant to the terms of the agreement, LegacyTexas Financial Group’s LegacyTexas Bank will merge into Prosperity Bank.
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All LegacyTexas stockholders will receive 0.5280 shares of Prosperity common stock and $6.28 cash for each LegacyTexas share.
According to Prosperity’s closing price on 14 June 2019, the consideration amounts to $41.78 per share.
Prosperity chairman and CEO David Zalman said: “Through the second largest bank merger in the history of Texas, our combined companies create the second largest bank by deposits headquartered in Texas.
“Together, our increased scale better positions us to invest in future opportunities and serve our customers. LegacyTexas has been serving the North Texas area for more than 60 years and we believe that our banks are complementary and provide many opportunities for continued growth.
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By GlobalData“This is a rare opportunity to significantly enhance our presence in the Dallas/Fort Worth MSA, a market with a diverse economy that is continually attracting investment and has a growing population.”
LegacyTexas Bank has 42 branches across 19 North Texas cities in and around the Dallas-Fort Worth area. As of 31 March 2019, LegacyTexas reported total assets of $9.3bn.
The LegacyTexas Financial Group acquisition is expected to close during the fourth quarter of 2019.
The completion is subject to LegacyTexas stockholders and Prosperity shareholders consents and customary regulatory approvals.
