Independent Financial parent axes merger with Texas Capital Bancshares due to COVID
DALLAS and MCKINNEY, Texas — Independent Bank Group Inc. (Nasdaq: IBTX), the parent company of Guaranty Bancorp, is ending its merger with Texas Capital Bancshares Inc. (Nasdaq: TCBI) as economic uncertainty from the COVID-19 pandemic continues to manifest.
In a statement, Independent said the all-stock deal with Dallas-based Texas Capital was no longer tenable due to the “extreme and unpredictable economic conditions” created by the pandemic.
“Given the significant uncertainty caused by the COVID-19 pandemic and the resulting economic and market environment, it would not be prudent to continue to pursue the combination and integration of our companies at this time,” Independent Bank chairman and CEO David Brooks said in a prepared statement.
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Neither side is liable to pay a termination fee.
The two companies originally announced their planned tie-up in early December, which at the time was expected to create a new entity with a market capitalization of $5.5 billion and more than $48 billion in assets. The merger was expected to close in mid-2020.
Independent Bank acquired Denver-based Guaranty Bancorp. in early 2019 for $1 billion and rebranded itself to Independent Financial last October. It operates local branches in Berthoud, Brighton, Boulder, Eaton, Fort Collins, Greeley, Longmont, Loveland and Westminster.
Texas Capital has branches in Austin, Dallas, Fort Worth, Houston and San Antonio.
The ongoing COVID-19 crisis has also thrown a wrench into other big-name merger and acquisition activity across the Front Range. Xerox Holdings Corp. (NYSE: XRX) ended a hostile takeover attempt of longtime Fort Collins employer HP Inc. (NYSE: HPQ) after the broader market turmoil at the time made its pursuit untenable.
Days later, Woodward Inc. (Nasdaq: WWD) and Hexcel Corp. (NYSE: HXL) cancelled their all-stock merger attempt to create a $6.3 billion aerospace supplier as months of grounded planes shook the commercial aerospace industry.
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