Following this announcement, Grasshopper Bank is set to acquire Auto Club Trust in a cash and stock transaction. The payment has been unanimously approved by the boards of directors of each company. Being subject to customary closing conditions, including regulatory approval, the transaction is also expected to close in the first half of 2025.
The initiative will combine Grasshopper Bank’s digital banking experience with Auto Club Trust’s already existing marketing strategy, while also expanding the client and business products provided to this community over time. In addition, both financial institutions will continue to focus on meeting the needs, preferences, and demands of customers and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well.
Once the transaction is finalised, Grasshopper Bank will be the exclusive financial institution powering depository and certain lending offerings to AAA members in the ACG’s 14-state territory. This will represent an expansion of Grasshopper Bank’s customer and business banking affinity program offering, while the bank will also continue to operate its other business lines and serve its current client segments.
Included in the transaction highlights is the process of creating a high-performing financial institution with approximately USD 1.4 billion in assets, as well as a 48.5% accretion to Grasshopper’s tangible book value at close. As part of the initiative, Grasshopper Bank is expected to raise approximately USD 35 million in new equity, while ACG will be issued a 4.9% ownership stake in Grasshopper.
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