March saw some high-dollar merger and acquisition (M&A) deals, including one of the largest market exchange company deals in history between the London Stock Exchange and Deutsche Boerse, State Street’s half-billion dollar purchase of GE Asset Management as GE continued to dismantle its financial arm, a $2 billion student housing purchase from private equity and real estate giant Harrison Street, and many more loan-boosting small-bank acquisition deals across the country.
Here’s a full rundown of some of last month’s largest bank and financial firm M&A deals …
One of the Largest Exchange Company Deals Ever between LSE and Deutsche Boerse
The long-anticipated deal between the London Stock Exchange Group and Deutsche Boerse was made after they agreed this month to form a “merger of equals.” Under the deal, the two exchange giants would create the new UK holding company UK TopCo, which would be 45.6% owned by LSE shareholders and majority-owned by Deutsche Boerse shareholders. Upon the deal’s completion (expected late 2016 or early 2017), the newly formed company would have headquarters in London and Frankfurt with equal company representation.
GE Asset Management Sold to State Street in a Half-Billion-Dollar Deal
State Street Corp. agreed to buy GE Asset Management — along with its $100 billion in assets under management and 100 institutional clients — from General Electric for $485 million cash. After the deal closes (sometime in the third quarter of 2016), State Street expects to generate $270 million-$300 million in new annual revenue. GE first announced in April 2015 that it planned to shed most of the assets held by its finance arm, GE Capital, to return its focus to its industrial roots.
Harrison Street Bets $2 Billion on Campus Crest’s Student Housing Properties
Private equity firm and real estate investor Harrison Street Real Estate Group acquired Campus Crest for $1.9 billion. The deal added Campus Crest’s 42,000 student-housing beds, building on Harrison Street’s plan to invest in long-term, need-based real estate in the education, health care, and storage sectors.
Small Banks Continue Consolidating to Boost Loan Business and Branch Networks
Michigan City, Indiana-based Horizon Bancorp agreed to buy LaPorte Bancorp for $94.1 million, which would boost its total assets by 20% to more than $3.24 billion while expanding its branch reach into the LaPorte area of Indiana.
Oklahoma City-based MidFirst Bank agreed to purchase 1st Century Bancshares for $116 million. The deal, expected to close in the second half of 2016, would expand Midland Financial’s reach into California for the first time, adding to the $11.6 billion-asset bank’s collection of 84 branches in Oklahoma, Arizona, and Colorado.
Morton-based Hometown Community Bancorp planned to expand into the Springfield and Lincoln markets of Illinois after agreeing to buy Illini Corporation and its 11 Illini Bank branches in Christian, Logan, McLean, and Sangamon counties. The deal, expected to be completed in the second quarter of 2016, boosted Morton Community Bank’s branch network by a third.
Ameris Bancorp bought Jacksonville Bancorp and its eight branches for $96.6 million, with the deal more than doubling its branch network in Jacksonville, Illinois, to 14 branches. Jacksonville’s operations aren’t expected to be fully integrated until May, so the bank will operate as a division of Ameris in the meantime.
Société Générale sought to expand its private banking business after agreeing to buy private banker Kleinwort Benson and its Kleinwort Benson Channel Islands business. The Kleinwort Benson businesses are two of the most established names in Britain and the Channel Islands.
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Christian Hudspeth is a company analyst for Dun & Bradstreet who researches and reports on more than 1,000 banks and financial firms for Hoover’s company database subscribers. Before joining Dun & Bradstreet, Christian was a managing editor, senior financial writer and analyst for a financial publishing company. His financial articles have been featured on MSN Money, Business Insider, Nasdaq.com, and several other well-known online publications. Before he was an editor, Christian worked in the commercial banking industry for seven years.