(Reuters) - Regional bank Pacific Premier Bancorp Inc (PPBI.O) said on Monday it would buy peer Opus Bank (OPB.O) in an all-stock deal valued at $1 billion, to expand its footprint in California and other parts of the western United States.
Opus Bank shareholders will receive 0.9 shares of Pacific Premier, or $26.82, for each share held, based on Pacific’s Friday closing. That represents a premium of 0.7% to Opus’ last closing share price.
Southern California-based Pacific Premier Bancorp is a business bank mainly focused on serving small- and middle-market businesses in the region.
Opus, headquartered in Irvine, California, will help Pacific Premier swell its assets by $8 billion to $20 billion. Pacific Premier shareholders will own about 63% of the combined company.
The deal, slated to close in the second quarter, is expected to increase Pacific's earnings per share by 14% in 2021. (reut.rs/36OrzCJ)
D.A. Davidson & Co advised Pacific Premier, while Piper Sandler & Co was the financial adviser to Opus.
Reporting by Bharath Manjesh in Bengaluru; Editing by Maju Samuel