First Busey Corporation completed the acquisition of Herget Financial Corporation.
January 08, 2015 at 09:30 am IST
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First Busey Corporation (NasdaqGS:BUSE) entered into an agreement to acquire Herget Financial Corporation for $34.1 million on September 25, 2014. Each shareholder of Herget Financial common stock will be entitled to receive $588.00 in cash. The merger consideration is subject to certain downward adjustments as set forth in the merger agreement. It is anticipated that Herget Bank will be merged with and into First Busey's bank subsidiary, Busey Bank, upon completion of the transaction. Herget Financial reported total assets of $273.9 million for the year ended June 30, 2014. At that time, Herget Bank's banking offices will become branches of Busey Bank. The executive officers and directors of Herget Financial have agreed to vote their shares of Herget Financial common stock in favor of approval of the merger agreement. Completion of the transaction is subject to customary closing conditions, regulatory approval, Herget Financial having an adjusted net worth of no less than $28 million and approval by Herget Financial shareholders. The Board of Directors of First Busey Corporation and Herget Financial Corporation approved the transaction. The executive officers and Directors of Herget Financial have agreed to vote their shares of Herget Financial common stock in favor of approval of the merger agreement. The transaction is expected to close in late 2014 or early 2015. The merger is expected to be accretive following its close.
As of December 13, 2014, the transaction was approved by Federal Reserve.
Robert M. Fleetwood of Barack Ferrazzano Kirschbaum & Nagelberg LLP acted as a legal advisor for First Busey Corporation, Sheshunoff Consulting + Solutions acted as a financial advisor for Herget Financial Corporation and Robert N. Flowers of Hunton & Williams LLP acted a legal advisor for Herget Financial Corporation.
First Busey Corporation (NasdaqGS:BUSE) completed the acquisition of Herget Financial Corporation on January 8, 2015. First Busey will operate Herget Financial as a separate banking subsidiary until it is merged with Busey Bank, which is expected to occur in the late first quarter of 2015.
First Busey Corporation is a bank holding company, which operates through its subsidiary, Busey Bank. The Companyâs segment includes Banking, which provides a full range of banking services to individual and corporate customers through its banking center network in Illinois; the St. Louis, Missouri metropolitan area; southwest Florida; and Indianapolis, Indiana; FirsTech segment, which provides comprehensive payment technology solutions, including online, mobile and voice-recognition bill payments; money management and credit card networks; direct debit services; lockbox remittance processing for payments made by mail; and walk-in payments. The segment also provides additional tools to help clients with billing, reconciliation, bill reminders, and treasury services, and Wealth Management segment provides a full range of asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation and farm management services to individuals, businesses, and foundations.