Bank of Southern California got a bit closer to fulfilling the promise of its name last week.
The San Diego-based business lender acquired Americas United Bank of Glendale Feb. 21 in a stock and cash deal worth approximately $44 million. The deal is expected to close in July, according to Bank of SoCal Chief Executive Nathan Rogge, at which point Americas United’s four Los Angeles-area bank branches will be rebranded. These outposts will join eight existing Bank of SoCal locations spanning San Diego County, Orange County and the Coachella Valley.
Rogge said the deal happened organically.
“We have a wish list or a dance card, if you will, of banks we’re interested in and I’m constantly taking stock to see if there something we can do,” he said. “Americas United was on that list and I know (Americas United Chief Executive) Adriana (Boeka) and it made sense.”
Both banks are publicly traded on over-the-counter markets. Stock holders of Americas United – which ranked No. 39 among Los Angeles County-based banks on the Business Journal’s most recent list, based on assets –will receive for each of their shares $7 in cash and just under half a share of Bank of SoCal stock.
In connection with the acquisition, Bank of SoCal raised $20 million in capital by selling about 1.4 million shares at $14.75 per share. The company’s shares were down 4.3 percent Feb. 22 to $15.10. Americas United stock was up 11.8 percent to $13.19.
Bank of SoCal has approximately $480 million in assets, while Americas United has some $235 million.
Rogge said combining operations made sense to both parties.
“It can be hard at times these days to be a smaller bank,” he said. “It’s not that we can’t thrive – we’re doing very well – but this helps both of us… We were already starting to get our feet into the Los Angeles market, and this just accelerates those plans.”
Downtown-based boutique investment bank MJC Partners acted as the advisor for Bank of SoCal and as placement officer on the company’s capital raise. It was the firm’s sixth transaction in the last three months, according to a firm spokeswoman.
E-Sports Expansion
Investment fund Vision Esports announced on Feb. 22 that it raised $38 million in a round led by Evolution Media, the investment firm backed by Creative Artists Agency and private equity fund TPG Growth.
Vision Esports used capital from its recent fundraising round to increase its stakes in its portfolio of e-sports companies, including e-sports franchise Echo Fox, e-sports record keeper Twin Galaxies and e-sports production company Vision Entertainment. The investment firm is now the largest shareholder in each of those startups.
Caltius Sees Exit
Caltius Equity Partners announced on Feb. 22 the sale of its portfolio company Vision Technology Solutions, a website developer for government organizations in the U.S. and Canada, to cloud-based software developer Granicus for an undisclosed amount.
Caltius Equity of West L.A. will maintain an interest in the business through its partial ownership stake in Granicus. Washington, D.C.-based Granicus acquired El Segundo headquartered Vision to create an integrated developer of websites and communication and legislative management software for governments, the company said in a press release.
Have a deal tip? Henry Meier can be reached at [email protected] or (323) 556-8321.
