Greater Bay Bancorp Acquiring CAPCO Financial Company

The purchase price translates to 3.7 times EBITDA. Greater Bay Bancorp, a $5.1 billion (in assets) financial services holding company with 10 bank subsidiaries, predicts that the transaction to be approximately 1% accretive in the first year of combined operations and approximately 2% accretive in the second year--after goodwill amortization and excluding one-time nonrecurring transaction-related expenses.

CAPCO has approximately $28 million in commitments and $2.8 million in equity. It provides accounts receivable financing to small businesses located in the Pacific Northwest. CAPCO president Steven Shaughnessey and its CEO Thomas Nesbit will continue to lead CAPCO's operations as part of Greater Bay Bancorp.

Greater Bay Bancorp CEO David L. Kalkbrenner says that as a loan production office, CAPCO will provide an opportunity for expansion of the business his company already generates in the Pacific Northwest through its Venture Banking Group.

Greater Bay Bancorp is the holding company for 10 area banks, including the Bank of Santa Clara and Cupertino National Bank. It provides commercial banking services to small and medium-sized businesses, real estate developers, property managers, business executives, professionals and other individuals.

For the fiscal year ended Dec. 31, Greater Bay's total interest income rose 44% to $368.4 million, while net interest income after loan loss provision rose 35% to $203.9 million. Before extraordinary items, net income rose 32% to $58.5 million.