US-based BOK Financial has signed an agreement to acquire CoBiz Financial in a deal valued at around $1bn.
As per terms of the deal, BOK Financial will pay 25% in cash, while the remaining 75% consideration in stock.
Based on the closing price of BOK Financial’s common shares on 15 June, CoBiz’s common shareholders will secure $977m total consideration, including 0.17 shares of BOK Financial common stock and 5.70 in cash for each share of CoBiz common stock.
Based in Denver, CoBiz is a commercially-focused bank that serves businesses, business owners and professionals in Colorado and Arizona.
With around $3.8bn in assets, CoBiz manages specialty lending lines of business, including healthcare and public finance, as well as fee-generating businesses such as wealth management and commercial insurance.
CoBiz’s subsidiaries include Colorado Business Bank and Arizona Business Bank, which offer commercial banking services.
CoBiz Private Client Advisors provides private banking through CoBiz Private Bank, and investment management and wealth planning through CoBiz Wealth.
CoBiz Insurance offers employee benefits, and property and casualty insurance brokerage services to the customers.
BOK Financial president and CEO Steven Bradshaw said: “Steve Bangert and his team have built a well-respected commercially-focused bank that has consistently grown shareholder value, with a strong credit culture and differentiated approach to business banking.”
Subject to the satisfaction of all customary closing conditions, the deal is expected to complete in the fourth quarter of this year.
Once the deal concludes, CoBiz chairman and CEO Steve Bangert will join the BOK Financial board of directors.
Bangert said: “BOK Financial enjoys an outstanding reputation as a supporter of the communities it serves, and we’re so pleased to join forces with a company that shares a similar approach to how we serve our customers, our employees and our communities.”
Based in Tulsa of Oklahoma, BOK Financial is a $33bn regional financial services firm, which offers commercial and consumer banking, investment and trust services.