Susquehanna Bancshares, Inc./Tower Bancorp, Inc.
On June 20, 2011, Susquehanna Bancshares, Inc. (Nasdaq: SUSQ) and Tower Bancorp, Inc. (Nasdaq: TOBC) announced the signing of a definitive agreement under which Susquehanna will acquire all outstanding shares of Tower common stock in a deal valued at $343 million.
Under the terms of the agreement, Tower shareholders will have the option of receiving either 3.4696 shares of Susquehanna common stock or $28.00 in cash for each share of Tower common stock, with $88 million of the aggregate consideration being paid in cash.
Susquehanna expects the transaction to be immediately accretive to EPS and 10% accretive to 2013 EPS; the internal rate of return of this transaction is expected to be approximately 25%. Key assumptions include annual cost savings of approximately $30 million, residual credit losses of $35 million, and a one-time, pre-tax cost of approximately $63 million.
Closing is expected in Q112.
Susquehanna was advised in this transaction by J.P. Morgan Securities LLC, as financial advisor and Morgan, Lewis & Bockius LLP as legal counsel. Tower was advised by Keefe, Bruyette & Woods as financial advisor and Rhoads & Sinon LLP as legal counsel.
Under the terms of the agreement, Tower shareholders will have the option of receiving either 3.4696 shares of Susquehanna common stock or $28.00 in cash for each share of Tower common stock, with $88 million of the aggregate consideration being paid in cash.
Susquehanna expects the transaction to be immediately accretive to EPS and 10% accretive to 2013 EPS; the internal rate of return of this transaction is expected to be approximately 25%. Key assumptions include annual cost savings of approximately $30 million, residual credit losses of $35 million, and a one-time, pre-tax cost of approximately $63 million.
Closing is expected in Q112.
Susquehanna was advised in this transaction by J.P. Morgan Securities LLC, as financial advisor and Morgan, Lewis & Bockius LLP as legal counsel. Tower was advised by Keefe, Bruyette & Woods as financial advisor and Rhoads & Sinon LLP as legal counsel.
