PacWest Bancorp To Buy CU Bancorp For $705 Mln - Quick Facts

(RTTNews) - PacWest Bancorp (PACW), a bank holding company, announced Thursday the signing of a definitive agreement and plan of merger to buy CU Bancorp (CUNB) in a transaction valued at approximately $705 million.

Under deal terms, CU Bancorp shareholders will receive 0.5308 shares of PacWest common stock and $12.00 in cash for each share of CU Bancorp. Based on PacWest's April 5 closing price, the total value of the merger consideration is $39.45 per CU Bancorp share.

Los Angeles -based CU Bancorp is the parent of California United Bank, with approximately $3.0 billion in assets and nine branches.

In connection with the transaction, California United Bank will be merged into Pacific Western Bank, the principal operating subsidiary of PacWest Bancorp.

The transaction, which was approved by the PacWest and CU Bancorp boards of directors, is expected to close in the fourth quarter of 2017. The deal is subject to customary closing conditions, including obtaining approval by CU Bancorp's shareholders and bank regulatory authorities.

As of December 31, 2016, on a pro forma consolidated basis, the combined company would have approximately $25.0 billion in assets and 87 branches, prior to contemplated consolidations.