UMB gains approval for $2bn Heartland Financial USA acquisition
Deal News | Jan 13, 2025 | EIN
UMB Financial has obtained regulatory approval for its acquisition of Heartland Financial USA, valued at $2 billion in an all-stock deal. With clearances from the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System, the merger agreement was finalized in April 2024 and is expected to close by the end of January 2025. UMB, headquartered in Kansas City, Missouri, offers a variety of banking services across several states, while Heartland Financial USA, based in Denver, Colorado, reported assets of $18.27 billion as of September 2024. This acquisition is anticipated to boost UMB's assets under management by 31% and expand its retail deposit base significantly. Additionally, the addition of 107 branches and 237 ATMs will fortify UMB's presence, formerly comprising 90 branches and 238 ATMs. Heartland stockholders will receive 0.55 shares of UMB stock per share, valuing each Heartland share at $45.74. Post-merger, former Heartland shareholders are expected to hold approximately 31% of the combined entity.
Sectors
- Banking and Financial Services
- Mergers and Acquisitions
Geography
- United States – Both UMB Financial and Heartland Financial USA are based in the United States, and the acquisition primarily affects their operations in several US states.
Industry
- Banking and Financial Services – The acquisition involves two banking institutions, UMB Financial and Heartland Financial USA, operating within the industry to expand financial services and market reach.
- Mergers and Acquisitions – The article discusses a significant M&A transaction between UMB Financial and Heartland Financial USA, highlighting strategic growth through acquisition.
Financials
- $2 billion – The all-stock deal value for the acquisition of Heartland Financial USA by UMB Financial.
- $18.27 billion – The total assets reported by Heartland Financial USA as of September 2024.
- 0.55 shares of UMB common stock – The exchange ratio for Heartland Financial USA stockholders per share.
- $45.74 – The value of each Heartland Financial USA share based on UMB's stock price as of April 26, 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| UMB Financial | Acquirer | Company | A Kansas City, Missouri-based company providing commercial, personal, and institutional banking services. |
| Heartland Financial USA | Target | Company | A Denver, Colorado-based banking institution with assets of $18.27 billion as of September 2024. |
| Office of the Comptroller of the Currency | Regulatory Authority | Government | A regulatory body that provided clearance for the UMB and Heartland merger. |
| Board of Governors of the Federal Reserve System | Regulatory Authority | Government | A federal agency that approved the UMB and Heartland acquisition. |