Atlantic Union Bankshares Corporation has announced its agreement to acquire Sandy Spring Bancorp in an all-stock transaction valued at approximately $1.6 billion. This move is expected to significantly enhance the combined company's presence in Northern Virginia and Maryland, creating the largest regional bank headquartered in the lower mid-Atlantic.
As of September 30, 2024, Sandy Spring Bancorp had $14.4 billion in assets, $11.7 billion in total deposits, and $11.5 billion in total loans. Upon completion of the acquisition, the combined company will have pro forma total assets of $39.2 billion, total deposits of $32.0 billion, and gross loans of $29.8 billion.
The acquisition will also result in the addition of 53 branch locations, effectively doubling Atlantic Union's wealth business by increasing assets under management by more than $6.5 billion.
Under the terms of the merger agreement, each outstanding share of Sandy Spring common stock will be converted into the right to receive 0.900 shares of Atlantic Union common stock, valuing the transaction at approximately $34.93 per Sandy Spring common share.
The merger agreement has been unanimously approved by the board of directors of both companies, and the transaction is expected to be completed by the end of the third quarter of 2025, subject to customary closing conditions, including regulatory approvals and approval by both Atlantic Union shareholders and Sandy Spring stockholders.
Atlantic Union was advised by Morgan Stanley & Co. LLC and Davis Polk & Wardwell LLP, while Sandy Spring was advised by Keefe, Bruyette & Woods, Inc., a Stifel Company, and Kilpatrick Townsend & Stockton LLP.
After the completion of the transaction, three members of the Sandy Spring board of directors, including Daniel J. Schrider, will join the Atlantic Union board of directors.
Atlantic Union will host a conference call to discuss its third-quarter earnings, and Sandy Spring will join to discuss the acquisition. The webcast with investor presentation can be accessed at a provided URL.
Upon completion, the combined company will have 129 branches and approximately 150 ATMs located throughout Virginia and in portions of Maryland and North Carolina.
As a result of these announcements, the company's shares have moved -5.3% on the market, and are now trading at a price of $36.77. If you want to know more, read the company's complete 8-K report here.
