PacWest Bancorp To Acquire Square 1 Financial In $849 Mln Deal - Quick Facts

(RTTNews) - PacWest Bancorp (PACW) agreed to acquire Square 1 Financial, Inc. (SQBK) in an all-stock deal valued at about $849 million. The deal will create a $19.8 billion asset commercial bank.

The deal will see Square 1 shareholders receiving PacWest common stock based on a fixed exchange ratio of 0.5997, implying a total consideration $27.49 per share, based on the PacWest closing common stock price of $45.83 on Friday.

In connection with the deal, Square 1 Bank will also merge into Pacific Western Bank, the Los Angeles-based, wholly-owned subsidiary of PacWest Bancorp. The combined company will remain headquartered in Los Angeles.

The Square 1 lending operations will continue to do business under the name Square 1 as a division of Pacific Western Bank.

The deal, expected to close in the fourth quarter of 2015, is primarily subject to approval of bank regulatory authorities and the Square 1 stockholders. Certain stockholders of Square 1 have agreed to vote in favor of the deal.