Tupelo, Mississippi-based BancorpSouth Bank has agreed to purchase Houston-based Cadence Bank in an all-stock deal that values the combined company at more than $6 billion, the two financial institutions announced Monday.
Under the terms of the merger agreement, Cadence shareholders will receive 0.70 BancorpSouth shares for each Cadence share they own, valuing Cadence at $2.81 billion, according to MarketWatch. Cadence shareholders will also receive $1.25 per share following the merger’s closing.
The combination will create a $44 billion-asset financial institution that will operate under the Cadence name. The deal, which is still subject to regulatory approval, is expected to close in the fourth quarter.
After the merger, BancorpSouth Bank CEO Dan Rollins will become chairman and CEO of the combined entity, while Cadence CEO Paul Murphy will serve as executive vice chairman.
The combined bank will operate headquarters in both Tupelo, Mississippi, and Houston, while its primary operations centers will continue to be located in Tupelo and Birmingham, Alabama.
The deal would create a bank with a footprint spanning from Texas to Florida, with little branch overlap, Rollins said Monday on a call with analysts.