WashingtonFirst to buy Alliance Bankshares
WashingtonFirst has revealed it intends to acquire Alliance Bankshares.
WashingtonFirst might have benefited from the use of negotiation strategies, as it has revealed it has gone into an agreement regarding the acquisition of Alliance Bankshares Corporation for an estimated $24.4 million (£15.09 million) of stock and cash.
Furthermore, WashingtonFirst has committed additional equity capital of $20 million from local investors, institutional groups and existing board members.
The firm originally began operating in 2004 and the deal with Alliance Bankshares will be the fourth acquisition it has ever made and its largest so far.
Alliance shareholders will be able to choose whether to trade in one share for either $5.30 or 0.4435 of WashingtonFirst's common stocks.
Chairman of Alliance Don Fisher said WashingtonFirst has a "proven track record of growth, profitability and the ability to execute mergers and acquisitions".
"We are confident that this merger will serve our shareholders, customers and employees very well," he added.
During the first three months of 2012, WashingtonFirst increased its net income by 47.2 per cent, or $705,000, when compared with the same timeframe in 2011.
Source: WashingtonFirst press release, May 3rd
Posted by Ron Maverick