Veritex to acquire tech-enabled deposit gathering platform interLINK for $91M

• Veritex (NASDAQ:VBTX) will acquire StoneCastle Cash Insured Sweep (dba as interLINK), a StoneCastle Partners subsidiary, primarily for cash and stock in a deal valued at ~$91M.
• VBTX will purchase interLINK, a tech-enabled core deposit gathering platform, for $3M in cash and issue ~2.1M shares to StoneCastle.
• Upon close of the deal, StoneCastle will recognize a taxable sale and will hold a minority stake of ~4% in VBTX.
• Concurrent with this announcement, VBTX plans to launch ~$150M stock offering.
• On a pro forma basis, including the stock offering, the transaction is expected to increase common equity tier 1 to ~9.9%, be accretive to tangible book value per share at closing, and be neutral to consensus EPS estimates in 2023, 8% accretive in 2024, and +14% accretive on a run-rate basis thereafter. The internal rate of return for this deal is expected to exceed 25%.
• Once integrated into Veritex's treasury function, interLINK will provide flexible and scalable access to ~$5.7B of highly diversified, stable core deposits.
• VBTX will be able to provide broker/dealers with a range of added services, including private banking, securities lending, and other credit or banking services.
• The transaction is expected to close in Q3 of 2022.