Email pagePDF viewPrint viewEmail AlertFAQInformation RequestTear sheetRSS FeedsSocial media sharing

mergers & acquisitions

M&A History<< Return to Mergers & Acquisitions
Deal Overview
Buyer: Umpqua Holdings Corporation
Actual Acquirer: Umpqua Bank
Target: Sterling Financial Corporation
Deal Type: Bank & Thrift Company
Agreement Date9/11/2013
Announcement Date9/11/2013
Announced Deal Value ($M)1,995.05
StatusCompleted
Completion Date4/18/2014
Announced Deal Value Per Share ($)30.90
Consideration Breakout
Cash ($M)137.0
Common Stock ($M)1,951.1
Common Stock Issued104,385,100
Deal Pricing Ratios
 AnnouncementCompletion
Price / Book (%)159.6170.4
Price / Tangible Book (%)167.1180.4
Price / Earnings (x)19.122.5
Price / Deposits (%)30.1030.36
Price / Assets (%)20.0720.82
Tangible Book Premium/ Deposits (%)NA16.52
Deal Terms
Description of Consideration
Umpqua Holdings Corp. paid $2.18 in cash and exchanged 1.671 shares of its common shares for each outstanding share of Sterling Financial Corp. Umpqua Holdings Corp. also assumed approximately $1.50 billion in debt & junior subordinated debentures.
Accounting MethodAcquisition
In-State Transaction?No
Merger of Equals?No
Geographic Expansion?Partial Overlap
Goodwill Generated ($000)1,023,488
Estimated Cost Savings (%)30.00
Estimated Cost Savings ($000)NA
Est. Restructuring Charges ($000)80,000
Maximum Termination Fee ($000)75,000
Minimum Termination Fee ($000)0
Exchange Ratio (Common For Common)1.67
Exchange Ratio (Common For Preferred)NA
Exchange Ratio (Preferred For Common)NA
Exchange Ratio (Preferred For Preferred)NA
Lockup AgreementNo
Strike Price ($)NA
% of Shares OutstandingNA
Shares Under OptionNA
Core Deposit Intangibles ($000)54,562
Additional Deal Information
Post-Completion
Year
Deal
Accretive?
Earnings
Accretion(%)
Earnings
Accretion($)
Est. Cost
Savings(%)
Est. Cost
Savings($000)
1AccretiveNANA1543,200
2Accretive12.00NA3086,400
Deal Advisers - Financial Advisers
Party AdvisedAdviser Hired?Firm Name
BuyerYesJ.P. Morgan Securities LLC
SellerYesSandler O'Neill & Partners LP

Deal Advisers - Legal Counsel
Party AdvisedAdviser Hired?Firm Name
BuyerYesWachtell Lipton Rosen & Katz
SellerYesDavis Polk & Wardwell LLP

Copyright 2018, © S&P Global Market Intelligence  Terms of Use