Provident Financial Services Inc. (PFS: Quote) and Team Capital Bank announced a definitive agreement under which Team Capital will merge with and into The Provident Bank. Consideration will be paid to Team Capital stockholders in a combination of stock and cash valued at $122 million. Under the terms of the agreement, 75% of Team Capital's common shares will be converted into Provident common stock and the remaining 25% will be exchanged for cash. Team Capital's stockholders will have the option to elect to receive either 0.8575 shares of Provident common stock or $16.25 in cash for each Team Capital common share, subject to proration to ensure that in the aggregate 75% of Team Capital's shares will be converted into Provident common stock.
Upon completion of the transaction, Provident Bank will assume a five branch Pennsylvania network in the business lending markets of Bucks County and the Lehigh Valley. The merger adds seven branches to Provident's New Jersey franchise and expands Provident's network into the growing banking markets of Hunterdon and Warren counties.
The completion of the transaction is subject to Team Capital's stockholder approval and regulatory approvals for both companies.
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by RTT Staff Writer
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