The stock price of TriState Capital (NASDAQ: TSC) soared in premarket trading on Thursday, with the market reacting well to the $1.1 billion acquisition from Raymond James Financial.
TriState stockholders will be paid the equivalent of $31.09 in cash as well as further stock in Raymond James. For preferred shareholders, holdings will be transferred to an amount of common stock and sold at $30 per share – a 32% premium on TriState’s closing price as of Wednesday.
There is no merger planned, with TriState continuing to act as a unique brand – with no real changes to management or internal affairs. The total value of the deal is estimated to involve around $354 million in cash and 7.8 million shares in Raymond James stock – putting the total value at an aggregate of $1.1 billion.
CEO of Raymond James, Paul Reilly, expresses his interest in the company:
“TriState Capital has a terrific, client-centric franchise focused on serving clients with premier private banking, commercial banking, and niche investment management products and services,”
Adding:
“This acquisition further illustrates our commitment to utilizing excess capital through organic and inorganic growth that we expect to drive strong returns for shareholders over the long term.”
Equally, Jim Getz, CEO of TriState, see’s the transaction as a natural progression through a merging of values and vision:
“We founded TriState Capital 14 years ago because we saw an incredible opportunity to build a successful company built on a commitment to independence, a long-term perspective, integrity, and putting clients squarely at the center of everything we do and every decision we make…Raymond James shares those values and allows us to be part of one of the most highly regarded financial services companies in the nation.”
Investors have taken kindly to the acquisition; recognizing that being the latest part of the Raymond James portfolio is a transition revolving around optimizing long-term growth with one of the most well-shaped financial companies in the US. At the time of writing, TSC stock is holding onto premarket gains of just over 28% at a price of $29.25, reaching highs not seen since 2019.
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