M&A · Financials · State Commercial Banks
Washington Federal, Inc. to acquire Luther Burbank Corp
Announced Nov 13, 2022 · Closed Feb 29, 2024
Deal value$654M
Premium—To unaffected price
EV / Adj. EBITDA—
ConsiderationAll stock
Transaction
- Acquirer
- Washington Federal, Inc.
- Target
- Luther Burbank Corp
- Buyer type
- Strategic
- Offer price per share
- —
- Enterprise value
- —
- Status
- Closed Feb 29, 2024
Deal protections
- Break fee (target pays)
- $26.2M · 4.0%
- Reverse fee (buyer pays)
- —
- Go-shop
- —
- Financing
- —
Advisors
- To the acquirer
- Not disclosed
- To the target
- Piper Sandler
Sector context · Financials
- Comparable deals
- 86 in the prior 24 months
- Premium
- Sector median 32.0%
- EV / Adj. EBITDA
- Sector median 23.7x
- Break fee
- 4.0% vs. 3.6% sector median
Timeline
- AnnouncedNov 13, 2022
- Proxy filedMar 28, 2023
- Definitive proxyMar 28, 2023
- Shareholder voteMay 4, 2023
- ClosedFeb 29, 2024
Valuation · fairness opinions
Discounted cash flowStifel$40.13$59.88
Discounted cash flowStifel$9.75$16.74
Precedent transactionsPiper Sandler$4.18$7.83
Precedent transactionsPiper Sandler$8.25$13.75
Precedent transactionsPiper Sandler$27.56$48.80
Precedent transactionsPiper Sandler$37.38$59.05
Implied value per Luther Burbank Corp share by analysis, from Stifel and Piper Sandler · DCF discount rate 10%–14%.