Englewood Cliffs-based ConnectOne Bancorp Inc. said Aug. 16 it agreed to acquire crosstown rival Bancorp of New Jersey Inc. in a cash and stock deal valued at $113 million.
Under the terms of the agreement, the target’s shareholders will receive either 0.78 shares of ConnectOne stock or $16.25 in cash for their shares, subject to a pro-rata mix of 80 percent stock and 20 percent cash. The buyer said the transaction values Bancorp of New Jersey shares at $15.48 based on ConnectOne’s $19.60 closing price on Aug. 15.
ConnectOne said the deal would be accretive to earnings by about 5 percent. The combined entity will have total assets of $7 billion, deposits of $5.4 billion and loans of $5.9 billion, as of June 30, including $800 million of loans from the target. Bancorp of New Jersey has nine offices in Bergen County; ConnectionOne operates 29 locations in New Jersey and New York.
“This is an exciting opportunity to join a like-minded, high-performing commercial bank with considerable franchise value and growth potential,” said Nancy Graves, Bancorp of New Jersey’s president and chief executive officer, in a statement.
“Bancorp of New Jersey is a natural fit for ConnectOne given its commercial business focus, overlapping geographic footprint, shared client base and the considerable synergies that are expected,” ConnectOne Chairman and CEO Frank Sorrentino said in the statement. He added that the deal “supports our defined growth strategy which includes opportunistic growth through M&A.”
The buyer noted that the Bancorp of New Jersey is “similar in several ways including its focus on commercial clients, location of its offices, and its core processing provider.”
Keefe, Bruyette & Woods Inc., served as financial advisor to ConnectOne; Squire Patton Boggs (US) LLP provided legal counsel. Bancorp of New Jersey turned to Sandler O’Neill & Partners LP for financial advice and Holland & Knight LLP for counsel.