Aquesta is a Cornelius, North Carolina-based bank that serves retail and business customers through a network of nine branches
Aquesta's branches are located in the attractive markets of Charlotte. (Credit: Tumisu from Pixabay.)
United Community Banks has reached an agreement to acquire Aquesta Financial Holdings, including its wholly-owned subsidiary Aquesta Bank, for a consideration of around $131m.
The total consideration includes nearly $12m in value for outstanding options and warrants to acquire Aquesta common stock, said the company.
Under the terms of the agreement, Aquesta stockholders will be elected to receive their consideration in cash, where United will pay only a 30% of the total consideration in cash.
United chairman and chief executive officer Lynn Harton said: “This transaction is consistent with our desire to expand into attractive and fast-growing markets that we know well.
“We have been investing in Charlotte over the past several years and have commercial banking and mortgage teams already in place.
“Aquesta is an exciting opportunity for us to increase our presence and accelerate our growth with a high-quality company that shares our values of customer service, employee engagement and community development.”
Established in 2006, Aquesta is a Cornelius, North Carolina-based bank serving retail and business customers through a network of nine branches.
Its branches are located in the attractive markets of Charlotte and also in the coastal city of Wilmington, North Carolina.
Also, Aquesta has loan production offices in Raleigh, North Carolina, along with Greenville and Charleston, South Carolina.
The bank’s total assets stood at $752m, with total loans of $576m, as of 31 March 2021.
Closing of the transaction is expected in the fourth quarter of 2021, subject to customary conditions, including regulatory approval as well as the approval of Aquesta’s stockholders.
For the transaction, Hovde Group served as financial advisor to United and Nelson Mullins Riley & Scarborough was its legal advisor.
Piper Sandler & Co. served as financial advisor to Aquesta, while Wyrick Robbins Yates & Ponton acted as its legal advisor.
Aquesta president and chief executive officer Jim Engel said: “From the beginning, we have focused on developing a business model with a focus on relationship banking in Charlotte and other key markets in the Carolinas, which are some of the most attractive and fastest growing markets in the Southeast and the country.
“We believe that we have been successful at that. However, to continue growing and becoming more profitable, we needed a partner who can provide us the opportunity to better serve our customers with a larger balance sheet and expanded products and services to offer.
“Our partnership with the United team provides just that, and I believe the synergies that exist between our companies will result in tremendous success for both sides.”
In July last year, United has completed its acquisition of Three Shores Bancorporation, along with its subsidiary, Seaside National Bank & Trust.