LendingClub has agreed to buy Radius Bancorp, which includes its digital subsidiary Radius Bank, for USD 185 million in cash and stock.
The LendingClub board of directors has created a Temporary Charter Bank Protection Agreement, also known as a stockholders rights agreement, to prevent the closing from being delayed and to comply with federal regulations.
The agreement provides for the dilution of any person or entity that buys 25% or more equity in the LendingClub or 7.5% of LendingClub's voting securities. The agreement will expire immediately after the deal is closed or after 18 months, whichever happens first. Officials said the deal is expected to close in 12 to 18 months.
LendingClub, an online marketplace that provides USD 12.3 billion in loans, will combine with US-based Radius, which was founded in 1987 and has USD 1.4 billion in assets.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now