Heritage Bank Of Commerce To Buy Bay View Funding For $22.5 Mln In Cash

(RTTNews) - Heritage Commerce Corp (HTBK), parent company of Heritage Bank of Commerce, announced that Heritage Bank of Commerce has signed a definitive stock purchase agreement to acquire BVF/CSNK Acquisition Corp. for $22.5 million in cash.

Based in Santa Clara, California, BVF is the parent company of CSNK Working Capital Finance Corp. dba Bay View Funding, which provides business-essential working capital factoring financing to various industries throughout the United States.

BVF had total assets of $43.8 million as of August 31, 2014. Upon completion of the acquisition, BVF will become a subsidiary of Heritage Bank of Commerce, reporting directly to Keith Wilton, EVP and Chief Operating Officer of Heritage Bank of Commerce.

The boards of both companies and shareholders of BVF have approved the transaction. Completion of the acquisition is expected as soon as possible after receipt of any regulatory approvals required.

Heritage Bank of Commerce expects to incur pre-tax acquisition and integration costs of about $1.0 million to $1.3 million in the third-quarter and fourth-quarter of 2014.

Upon completion and full integration of the acquisition of BVF by Heritage Bank of Commerce, the company anticipates earnings per share accretion in excess of 20% in 2015.