Union Bankshares Corporation amends terms to acquire First Market Bank

Update on June 19, 2009:

Union Bankshares Corporation (Union), a multi-bank holding company, has amended the terms of business combination with First Market Bank, FSB, under which Union will acquire 100% stake in FSB. Both the companies are based in the US.

Under the terms of amendment, after the business combination, FSB will combine with Union Bank and Trust Company, a bank owned by Union.

Announcement (March 30, 2009):

Union has signed an agreement to acquire FSB, a provider of personal and commercial banking services, in an all stock transaction valued at approximately $105.4 million.

Under the terms of the agreement, Union will issue 6,701,485 shares of common stock to FSB, equal to 33% pro-forma ownership. Additionally, FSB's $10 million of non-cumulative preferred equity will convert into shares of Union common stock subject to terms outlined in the definitive agreement.

Keefe, Bruyette & Woods, Inc. is acting as financial advisor and LeClairRyan is acting as legal advisor to Union. Cary Street Partners LLC is acting as financial advisor and McGuireWoods LLP is acting as legal advisor to FSB on the transaction.

The transaction is expected to close by the end of 2009.

Deal Value (US$ Million) 105.4
Deal Type                Acquisition
Sub-Category             100% Acquisition
Deal Status              Announced: 2009-03-30

Deal Participants

Target (Company)   First Market Bank, FSB
Acquirer (Company) Union Bankshares Corporation

Related terms: acquisition, advisor, bank, banking, business, commercial, equity, legal, unions