TriState Capital will operate as a separate entity, and an independently chartered bank of Raymond James, upon closing of the transaction
Raymond James to buy Tristate Capital. (Credit: PublicDomainPictures from Pixabay.)
Raymond James Financial has agreed to acquire TriState Capital, a Pennsylvania, US-based bank holding firm, in a cash and stock transaction totalling around $1.1bn.
Under the terms of the deal, TriState Capital common stockholders will receive $6 cash and 0.25 Raymond James shares for each share of TriState Capital held.
The consideration represents a price of $31.09 per share, based on the closing price of Raymond James common stock on 19 October 2021.
The transaction is expected to close in 2022, subject to customary closing conditions, including regulatory and TriState Capital shareholders’ approvals.
Upon closing, TriState Capital is planned to operate as a separate entity, and an independently chartered bank of Raymond James.
TriState Capital chairman Jim Getz, CEO Brian Fetterolf and TriState Capital subsidiary Chartwell CEO Tim Riddle will continue in their current positions.
The management team, along with nearly 350 associates are expected to remain with the company, which would operate from its existing locations.
Raymond James chairman and CEO Paul Reilly said: “TriState Capital has a terrific, client-centric franchise focused on serving clients with premier private banking, commercial banking and niche investment management products and services.
“As we have followed the firm and management team over the past several years, including as its largest deposit client, we’ve admired its leadership position in offering securities-based lending through a scalable and robust technology platform.
“Importantly, this acquisition further illustrates our commitment to utilise excess capital through organic and inorganic growth that we expect to drive strong returns for shareholders over the long term.”
TriState Capital is engaged in offering regional lending and cash management services to business and commercial real estate clients.
With the business combination, the company is expected to benefit from additional resources to invest in its products and technology.
Also, the transaction provides an additional bank charter and a liquidity and treasury management business, strengthening Raymond James’ capabilities.
Building on its commercial funding solutions for private managers, TriState Capital is enabled to expand relationships with Raymond James’ investment banking clients.
TriState Capital chairman and CEO Jim Getz said: “We founded TriState Capital 14 years ago because we saw an incredible opportunity to build a successful company built on a commitment to independence, a long-term perspective, integrity, and putting clients squarely at the centre of everything we do and every decision we make.
“Raymond James shares those values and allows us to be part of one of the most highly regarded financial services companies in the nation.
“Our clients will continue to benefit from working with the same talented teams and the TriState Capital and Chartwell brands they already know so well, along with the technology we’ve invested in to provide an exceptional and responsive client experience.”