ConnectOne Bancorp to Buy Bancorp of NJ in $113M Deal
The merger if finalized would strengthen ConnectOne’s scale and competitive position in the New York metro market and as one of New Jersey’s largest independent banks. Bancorp of New Jersey will add approximately $800 million of deposits and loans to ConnectOne.
ENGLEWOOD CLIFFS, NJ—Locally-based ConnectOne Bancorp, Inc. announced on Friday plans to acquire Bancorp of New Jersey, Inc. the parent of the Bank of New Jersey, in a deal valued at $113 million.
The transaction is valued at in the aggregate at approximately $15.48 per Bancorp of New Jersey share, based upon the closing common stock price of $19.60 for ConnectOne Bancorp as of Aug. 15.
The transaction has been unanimously approved by the Board of Directors of both companies and is expected to be completed in the first quarter of 2020, subject to approval by shareholders of both Bancorp of New Jersey and ConnectOne, as well as regulatory approvals and other customary closing conditions.
“This is a financially savvy, in-market acquisition with strong economics to enhance our powerful franchise. The accretive transaction demonstrates our commitment to deliver attractive long-term returns for our shareholders and strongly supports our defined growth strategy which includes opportunistic growth through M&A,” said Frank Sorrentino, ConnectOne’s chairman and CEO. “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.”
The merger if finalized would strengthen ConnectOne’s scale and competitive position in the New York metro market and as one of New Jersey’s largest independent banks. Bancorp of New Jersey will add approximately $800 million of deposits and loans to ConnectOne.
ConnectOne Bancorp, Inc., through its subsidiary, ConnectOne Bank offers a full suite of both commercial and consumer banking and lending products and services through its 29 banking offices located in New York and New Jersey.
Founded in 2006, Bancorp of New Jersey, Inc. is the holding company for Bank of New Jersey, which currently operates out of nine branch offices located in Fort Lee, Hackensack, Haworth, Englewood Cliffs, Englewood, Cliffside Park, and Woodcliff Lake.
“This is an exciting opportunity to join a like-minded, high-performing commercial bank with considerable franchise value and growth potential,” said Nancy E. Graves, Bancorp of New Jersey’s president and CEO. “ConnectOne shares our relationship-centric business culture, and together we will provide our clients with growth opportunities by increasing the breadth of products and services, higher lending limits and leading-edge technology. We are proud of what we have accomplished for our shareholders, customers and communities and can best leverage what we have built through partnering with ConnectOne.”
Effective at the closing of the transaction, one current director of Bancorp of New Jersey’s board will join the Board of Directors of both ConnectOne Bancorp, Inc. and ConnectOne Bank.
Keefe, Bruyette & Woods, Inc., a Stifel Company, served as financial advisor to ConnectOne and Squire Patton Boggs (US) LLP served as its legal counsel. Sandler O’Neill & Partners, L.P. served as financial advisor to Bancorp of New Jersey and Holland & Knight LLP served as its legal counsel.