Home BancShares Inc. of Conway on Friday announced it had completed its acquisition of Happy Bancshares Inc. of Texas.
The final cost of the transaction was just under $962 million, higher than the initial estimate of $919 million, Home BancShares said in a news release.
Under the terms of the agreement, which was announced in September, Home BancShares (NYSE: HOMB) will issue about 42.4 million shares of its common stock valued at approximately $958.8 million as of April 1.
Happy Bancshares stock holders with appreciation rights received about $3.1 million in cash in cancellation of those rights immediately before the merger.
“The completion of the acquisition of Happy State Bank is a pivotal moment for Home and is another example of our ability to make smart, strategic deals that are immediately accretive,” Home Bancshares President, Chairman and CEO John Allison said in the release. “The long-awaited entry into Texas came at just the right time and with all the right deal attributes. We expect this to be the beginning of a bright future in Texas.”
As of Dec. 31, Happy, the parent company of Happy State Bank, had approximately $6.81 billion in total assets, $3.59 billion in loans and $5.81 billion in deposits.
With the completion of the acquisition, Home BancShares, the parent company of Centennial Bank, now operates 76 branches in Arkansas, 78 branches in Florida, 62 branches in Texas, five branches in south Alabama, and one branch in New York City.
The Federal Reserve Board approved the acquisition in February.
Shareholders from both companies approved the deal Dec. 15. The Arkansas State Banking Board and the Arkansas State Bank Commissioner approved the deal the next day.