SouthState Acquires Independent Bank Group for $2 Billion

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

Upon completion of the acquisition, Independent Bank Group shareholders will receive 0.60 shares of SouthState common stock for each outstanding share of Independent Bank Group common stock, equating to a per share value of $48.51 and an aggregate transaction value of approximately $2 billion based on SouthState’s closing stock price of $80.85 as of May 17, 2024.

It's notable that 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. The acquisition has been approved by the boards of directors of both SouthState and Independent Bank Group, subject to customary closing conditions, including regulatory approvals and shareholder approval. The transaction is expected to close by the end of the first quarter of 2025.

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

The acquisition is expected to be discussed in a joint investor conference call hosted by SouthState and Independent Bank Group. Additionally, the live webcast and related presentation will be available on the investor relations section of each company’s website.

Upon completion of the acquisition, the combined company is expected to have a market capitalization of approximately $8.2 billion based on the closing stock price of SouthState as of May 17, 2024. The market has reacted to these announcements by moving the company's shares -0.0% to a price of $80.83. Check out the company's full 8-K submission here.

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