Tippapatt
First Busey Corp. (NASDAQ:BUSE) has agreed to acquire Merchants & Manufacturers Bank in a deal with an aggregate implied deal value of about $41.6M, the community lenders said Monday.
The move is set to enhance Busey’s (BUSE) growing suburban Chicago market footprint by expanding the company’s deposit market share in DuPage and Will Counties, while bolstering its commercial banking relationships and wealth management capabilities.
Under the terms of the agreement, M&M’s stockholders will have the right to elect to receive either $117.74 in cash, 5.7294 shares of Busey (BUSE) common stock, or mixed consideration of $34.55 in cash and 4.0481 shares of Busey common stock.
Shareholder elections are subject to proration such that total consideration consists of ~71% Busey (BUSE) common stock and 29% cash.
The transaction is expected to close in Q2 2024. At the time of the merger, M&M Bank banking centers will become branches of Busey Bank. The pro forma organization will have combined assets of $12.7B, $8.3B in gross loans, $10.7B in deposits and over $11.5B in wealth assets under care.
BUSE advanced 2% in after-hours trading.
