M&A · Financials · State Commercial Banks
First Merchants Corp to acquire Level One Bancorp Inc
Announced Nov 4, 2021 · Closed Mar 31, 2022
Deal value$324M
Premium27.2%To unaffected price
EV / Adj. EBITDA—
ConsiderationCash and stock
Transaction
- Acquirer
- First Merchants Corp (FRME)
- Target
- Level One Bancorp Inc
- Buyer type
- Strategic
- Offer price per share
- —
- Enterprise value
- —
- Status
- Closed Mar 31, 2022
Deal protections
- Break fee (target pays)
- $11.1M · 3.4%
- Reverse fee (buyer pays)
- $10.0M · 3.1%
- Go-shop
- No-shop
- Financing
- —
Advisors
- To the acquirer
- Stephens
- To the target
- Piper Sandler
Sector context · Financials
- Comparable deals
- 57 in the prior 24 months
- Premium
- 27.2% vs. 39.8% sector median
- EV / Adj. EBITDA
- Sector median 21.6x
- Break fee
- 3.4% vs. 3.7% sector median
Timeline
- AnnouncedNov 4, 2021
- Proxy filedJan 14, 2022
- Definitive proxyJan 14, 2022
- Shareholder voteMar 1, 2022
- ClosedMar 31, 2022
Valuation · fairness opinions
Precedent transactions$26.51$53.16
Precedent transactions$27.60$42.90
Precedent transactions$30.44$46.70
Precedent transactions$36.72$52.42
Implied value per Level One Bancorp Inc share by analysis, from Piper Sandler · DCF discount rate 9%–13%.