United Bankshares To Buy Cardinal Financial In $912 Mln Stock Deal - Quick Facts

(RTTNews) - United Bankshares, Inc. (UBSI) Thursday announced that it has signed a definitive merger agreement with Cardinal Financial Corp. (CFNL), a Virginia -based financial services holding company. The aggregate consideration of the transaction is approximately $912 million.

United will acquire Cardinal in exchange for its common shares, and the exchange ratio will be fixed at 0.71 of United's shares for each share of Cardinal. The announced price represents 2.24 times Cardinal's tangible book value at June 30, 2016.

The transaction was unanimously approved by both companies' Boards of Directors and is expected to close mid-2017, pending regulatory approval and United and Cardinal shareholder approval.

Following the deal, Cardinal Bank will merge into United Bank, United's Virginia chartered bank, the largest community bank headquartered in the D.C. Metro region. Upon completion of the merger, United Bank will have assets of approximately $14.4 billion.

Upon completion of the merger, United's assets will grow to approximately $20 billion with a projected market capitalization of approximately $3.9 billion. Based upon this projected market capitalization, United would be the 32nd largest banking company in the country.

United said the latest deal marks the 31st acquisition of the current administration and the tenth acquisition for United in the D.C. Metro region.

In the deal, Keefe, Bruyette & Woods, Inc. served as financial advisor to United, and Sandler O'Neill & Partners, L.P. served as financial advisor to Cardinal.