US-based Renasant Corp has agreed to purchase First M&F Corp in a stock-based deal valued at an estimated $115.2m, in order to boost its business.
The acquisition will strengthen Renasant’s reach in important markets in Mississippi, the Birmingham and the Memphis regions, the company said.
Under terms of the agreement, First M&F holders will receive 0.6425 shares of Renasant common stock or $19.22 a share as of 4 February closing price.
It is also expected that the integration will boost the acquirer’s insurance operations, and harmonizes its mortgage and wealth-management operations.
Following completion of the transaction, which is likely to close during the third quarter of current fiscal, the united entity will have approximately $5.8bn in total assets.
The M&F bank operates 36 full-service locations and delivers numerous financial products and services to individuals, businesses, organizations, governments among others.
The investment banking firm of Sandler O’Neill + Partners and the law firm of Phelps Dunbar advised Renasant, while First M&F was offered advise by Keefe, Bruyette & Woods, Jones, Walker, Waechter, Poitevent, Carrere & Denegre.