A locally-owned Virginia bank will be purchased by United Bankshares, Inc. of Charleston, W.Va.
United Bankshares this week announced it would purchase Virginia Commerce Bank and its 28 banking locations across Northern Virginia, including banking centers in Prince William County and Frederickburg.
The company will purchase Virginia Commerce for $28 million, and this is the latest in a series of 28 acquisitions for United Bankshares, stated a press release.
More from that press release from United Bank on the acquisition of Virginia Commerce (VCBI):
United will acquire 100% of the outstanding shares of VCBI in exchange for common shares of United. The exchange ratio will be fixed at 0.5442 of United’s shares for each share of VCBI which equates to a deal value of $14.00 per share, or approximately $490.6 million in the aggregate, based on United’s ten-day average closing price of $25.73 as of January 29, 2013. The transaction, which has been unanimously approved by both United’s and VCBI’s Boards of Directors, is expected to close in the third quarter of 2013, pending regulatory approvals and the approval of United’s and VCBI’s shareholders.
The aggregate consideration of the transaction is approximately $490.6 million based on VCBI’s common shares outstanding, plus outstanding options and warrants. The announced price represents a premium of 15% over VCBI’s closing price on January 29, 2013, and 1.82 times VCBI’s tangible book value at December 31, 2012.
[United Bankshares Chairman and Chief Executive Officer, Richard M.] Adams stated, “We are very excited about our merger with VCBI, which creates the leading independent community bank operating throughout the most attractive markets in Northern Virginia and Washington, D.C. VCBI is a well-run banking franchise and will be a great partner for United.”
