M&A · Financials · National Commercial Banks
Banc of California, Inc. to acquire Pacific Mercantile Bancorp
Announced Mar 22, 2021 · Closed Oct 19, 2021
Deal value$235M
Premium—To unaffected price
EV / Adj. EBITDA—
ConsiderationAll stock$9.77 per share
Transaction
- Acquirer
- Banc of California, Inc. (BANC)
- Target
- Pacific Mercantile Bancorp (PMBC)
- Buyer type
- Strategic
- Offer price per share
- $9.77
- Enterprise value
- —
- Status
- Closed Oct 19, 2021
Deal protections
- Break fee (target pays)
- $8.5M · 3.6%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- —
Advisors
- To the acquirer
- Piper Sandler
- To the target
- Stifel
Sector context · Financials
- Comparable deals
- 14 in the prior 24 months
- Premium
- Sector median 45.7%
- EV / Adj. EBITDA
- —
- Break fee
- 3.6% vs. 3.6% sector median
Timeline
- AnnouncedMar 22, 2021
- Proxy filedMay 14, 2021
- Definitive proxyMay 14, 2021
- Shareholder voteJun 23, 2021
- ClosedOct 19, 2021
Valuation · fairness opinions
Precedent transactionsPiper Sandler$12.28$25.57
Precedent transactionsPiper Sandler$12.38$22.07
Precedent transactionsPiper Sandler$3.87$8.78
Precedent transactionsPiper Sandler$5.04$8.13
Precedent transactionsPiper Sandler$6.40$14.51
Discounted cash flowStifel$7.14$9.83
Discounted cash flowStifel$16.21$22.97
Offer $9.77
Implied value per Pacific Mercantile Bancorp share by analysis, from Piper Sandler and Stifel · DCF discount rate 9%–15%.