Equitable Bank, a wholly-owned subsidiary of EQB, completed the acquisition of Concentra Bank for a premium of $35.7 million to its $459.7 million book value of common equity, subject to final standard closing purchase price adjustments.
“The addition of Concentra Bank brings immediate scale, diversification and reach to Canada’s Challenger Bank and will benefit all stakeholders as we use our combined advantages to grow, innovate and enhance our offerings in keeping with our proven value creation method,” Andrew Moor, president and CEO of Equitable Bank, said. “We are particularly excited to use our financial capacity and industry-leading technology capabilities to add value to our credit union partners across the country in ways that will support the important role they play in the lives of millions of Canadians. This is a proud day for all of us, and thanks to great preparation over the past few months, we will move with speed, care and purpose to achieve our ambitions.”
A portion of Equitable’s payment for the acquisition was financed with the net proceeds from the issuance in February of approximately $230 million of underwritten subscription receipts of EQB pursuant to a prospectus supplement dated Feb. 9 to the EQB base shelf prospectus dated June 12, 2020.
“With strong board and executive sponsorship and the dedication of our combined workforce of now approximately 1,800 challengers, the integration of Concentra Bank is expected to be customer focused, risk managed and accretive,” Chadwick Westlake, CFO of Equitable Bank, said. “Thanks to the integration work that commenced in February, we are confident that the financial benefits and synergies we identified at the outset will be achieved on the terms and timing originally envisioned. We look forward to sharing more of this guidance with investors as part of our EQB Q3 2022 results on Nov. 8.”
