Union Bankshares Corporation announced Friday morning that it will acquire Access National Corporation, the parent company of Access National Bank and Middleburg Bank.
Under the terms of the merger agreement, each outstanding share of Access common stock will be converted into the right to receive 0.75 shares of Union common stock, valuing the transaction at approximately $610 million, or $29.19 per share based on Union’s closing stock price of $38.92 on October 4, 2018.
The combined company would have total assets of $16 billion, with total deposits of $11.9 billion and gross loans of $11.4 billion, according to a news release.
Access National has more than a dozen locations throughout Northern Virginia.
“We are excited about the opportunity to bring our companies together to enhance both our products and customer service capabilities,” said Raymond Smoot Jr., chairman of Union’s Board of Directors. “We believe that our two companies are stronger together, and the combination gives Union a uniquely valuable franchise to create long term shareholder value.”
The transaction strengthens Union’s presence in Northern Virginia, according to the release.
“The combination with Access delivers on our stated priorities for this year as well as our market expansion goals in Northern Virginia," said John Asbury, president and CEO of Union. "Increasing our presence in Northern Virginia is a priority for Union as it is Virginia’s largest market and will substantially complete our Virginia franchise.”
Michael Clarke, president and CEO of Access, said the merger will help Access customers reap the rewards of a growing company in the market.
"Our go-forward position as Virginia’s regional bank allows our stakeholders to realize benefits it would have taken years for us to accomplish independently," said Clarke, who will join Union’s board of directors and will assist in the integration.
The merger agreement has been approved by the board of directors of each company and is expected to be completed in the first quarter of 2019.