TriState Capital shares are up 30% on Thursday: explained here

on Oct 21, 2021
Updated: Jun 1, 2022
  • Raymond James Financial to buy TriState Capital for $1.1 billion in cash & stock.
  • The bank holding firm will continue to operate under the same management.
  • Shares of TriState Capital Holdings Inc are up about 30% on Thursday morning.

Shares of TriState Capital Holdings Inc (NASDAQ: TSC) jumped 30% on Thursday after Raymond James Financial Inc (NYSE: RJF) said it will buy the bank holding company for $1.10 billion in cash and stock.

The announcement comes a day after TriState Capital reported its financial results for the third quarter.

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What’s in it for TriState Capital shareholders?

The acquisition that offers $6.0 in cash to TriState shareholders is subject to customary closing conditions and is expected to complete in 2022. Stockholders will get 0.25 shares of Raymond James for each TriState share they owned as well.

According to CEO Paul Reilly, the deal reiterates Raymond James’ commitment to growth and driving strong returns for shareholders.

TriState Capital has a terrific, client-centric franchise focused on serving clients with premier private banking, commercial banking and niche investment management products and services.

TriState to operate under the same management

Under the terms of the agreement, TriState will continue to operate under the same management as a separately branded firm. It will be a standalone division and independently chartered bank subsidiary of Raymond James.

Another 350 associates will also remain at TriState’s existing office locations to support “continued growth and high service levels,” as per the press release.

Raymond James & Associates will serve its parent company as a financial advisor, while Stephens Inc will advise TriState Capital. Raymond James picked Sullivan & Cromwell LLP as its legal counsel for the deal, and Mayer Brown LLP is serving the same role for TriState Capital.

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