SouthState Corporation Acquires Independent Bank Group in $2 Billion Deal

SouthState Corporation (NYSE: SSB) has announced its acquisition of Independent Bank Group, Inc. (NASDAQ: IBTX) in an all-stock transaction valued at approximately $2 billion. Independent Bank Group, based in McKinney, Texas, has approximately $18.9 billion in total assets, $15.7 billion in total deposits, and $14.6 billion in total loans as of March 31, 2024. Upon completion of the transaction, the combined company will have pro forma total assets of $65 billion, deposits of $55 billion, and gross loans of $48 billion.

The transaction was approved by the boards of directors of SouthState and Independent Bank Group, and it is subject to customary closing conditions, including regulatory approvals and approval by shareholders of both entities. The transaction is expected to close by the end of the first quarter of 2025.

Under the terms of the agreement, Independent Bank Group shareholders will receive 0.60 shares of SouthState common stock for each outstanding share of Independent Bank Group common stock. Additionally, three Independent Bank Group directors, including David Brooks and Independent Bank Group’s lead independent director G. Stacy Smith, will join both the SouthState Corporation board and the SouthState Bank board upon the completion of the transaction.

SouthState Corporation is being advised by Raymond James & Associates, Inc. as the exclusive financial advisor and Davis Polk & Wardwell LLP as legal counsel. Independent Bank Group is being advised by Keefe, Bruyette & Woods, a Stifel company, as the exclusive financial advisor, and Wachtell, Lipton, Rosen & Katz as legal counsel.

SouthState Corporation, headquartered in Winter Haven, Florida, provides consumer, commercial, mortgage, and wealth management solutions to more than one million customers throughout Florida, Alabama, Georgia, the Carolinas, and Virginia. Independent Bank Group, Inc., headquartered in McKinney, Texas, serves customers across Texas and Colorado with a wide range of relationship-driven banking services.

This acquisition signifies a significant move in the banking industry, with the combined entity poised to have a substantial presence in multiple fast-growing markets in the United States. The market has reacted to these announcements by moving the company's shares 8.3% to a price of $47.59. Check out the company's full 8-K submission here.

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