PacWest Bancorp (PACW), a California-based bank holding company, has agreed to buy commercial bank CapitalSource Inc. (CSE) for USD 2.3 billion worth of cash and stock. The merger will put the new combined bank among the top 8 largest commercial banks in California, with 96 branches in the state and an estimated USD 15.4 billion in assets.
Investors of CapitalSource will receive 18 % more than the closing price agreed upon the previous day, summing up to USD 11.64 in cash and PacWest stock.
The Los Angeles-based companies confirmed in a statement that 0.2837 PacWest stock and USD 2.47 will be exchanged for every CapitalSource share.
Matt Wagner, PacWest Chief Executive Offer, will be heading the combined bank while target company CEO, James Pieczynski, will be leading the CapitalSource unit.
Pieczynski said in a statement, "CapitalSource will give PacWest a more robust and diverse lending presence."
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