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PacWest acquires CapitalSource for $2.3B

Jul 23, 2013 - The Deal Pipeline
Mergers and Acquisitions

PacWest Bancorp took a step to expand its lending business by agreeing to merge with Los Angeles midmarket lender CapitalSource Inc. for about $11.64 per share, or about $2.3 billion in cash and stock.

The merger, announced late Monday, July 22, is structured as a tax-free merger under which CapitalSource shareholders will receive $2.47 per share in cash and 0.2837 shares of PacWest common stock for each CapitalSource share they own.

The merger is valued at about 1.66 times tangible...