$2B Deal: North Texas-Based Independent Bank Group Acquired by SouthState

Independent Bank Group operates in the Dallas-Fort Worth, Austin, and Houston areas as well as in the Colorado Front Range. When its acquisition by Florida-based SouthState Corporation is complete, the combined company will have a projected market cap of around $8.2 billion.

McKinney-based Independent Bank Group, which trades on the Nasdaq under the ticker IBTX, is being acquired by Florida-based SouthState Corporation in an all-stock transaction valued at around $2 billion.

Independent Bank Group has approximately $18.9 billion in total assets, $15.7 billion in total deposits, and $14.6 billion in total loans as of March 31, 2024. It operates in the Dallas-Fort Worth, Austin, and Houston areas as well as in the Colorado Front Range.

With a presence in 12 of the 15 fastest growing MSAs in the United States, the combined company will have pro forma total assets of $65 billion, deposits of $55 billion, gross loans of $48 billion upon the completion of the transaction, and a market capitalization of approximately $8.2 billion, based on the closing stock price of SouthState as of May 17, 2024, the companies said.

David R. Brooks, chairman and CEO of Independent Bank Group, called SouthState “a company whose culture, business model and credit discipline matches well with ours.”

“The combination of these two companies operating in growing markets provides a great opportunity for our Independent Bank Group teammates, clients and communities to flourish,” Brooks added in a statement.

John C. Corbett, CEO of SouthState, said that “with a local, geographic management model, an industry-leading track record on credit and a presence in some of the best markets in the country, Independent Bank Group is a great fit with SouthState.”

“I’ve known and respected David for several years, and I look forward to welcoming the Independent Bank Group team to our company and working together to capitalize on the great opportunities ahead of us,” he added.

Three IBG directors will join the SouthState boards

Subject to the deal’s terms, Independent Bank Group shareholders will receive 0.60 shares of SouthState common stock for each outstanding share of Independent Bank Group common stock, the companies said. Based on SouthState’s closing stock price of $80.85 as of May 17, that equates to a per share value of $48.51 and an aggregate transaction value of approximately $2 billion.

Three Independent Bank Group directors, including David Brooks and IBG’s Lead Independent Director G. Stacy Smith, will join both the SouthState Corporation board and the SouthState Bank board upon the completion of the transaction.

Raymond James & Associates, Inc. is serving as exclusive financial advisor and Davis Polk & Wardwell LLP is serving as legal counsel to SouthState in the transaction. Keefe, Bruyette & Woods, A Stifel Company, is serving as exclusive financial advisor and Wachtell, Lipton, Rosen & Katz is serving as legal counsel to Independent Bank Group in the transaction.

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