GBank to merge with BankCard Services

As per the information detailed in the merger agreement, BCS shareholders will receive an aggregate of USD 10.0 million in shares of the company’s common stock, valued at a closing price of USD 14.25 per share for the purposes of the merger. With the agreement currently approved by the disinterested members of the Board of Directors of BCS and the bank, the transaction is projected to be accretive to BCS’ earnings per share. Representatives from GBank expressed their enthusiasm over the transaction, with the bank looking forward to expanding its existing collaboration with BCS. Considering the platform’s capabilities of generating fees and sourcing noninterest-bearing deposits, the merger supports the current interest rate environment. Moreover, BCS’ intellectual property and licencing features intend to generate significant growth for the bank.

According to BCS’ officials, the company was founded in 2014, raising the necessary capital to allow GBank to participate in the launch of Cashless Gaming with Sightline Payments in its home state. The company developed proprietary banking solutions that can offer FDIC-insured individual ledger accounts to gaming patrons and payment users when they leverage apps or wallets of contracted partners. Through this strategic agreement, GBank can receive enhanced opportunities to leverage BCS solutions, including licencing its intellectual property to other financial institutions.

Furthermore, from an administrative perspective, the leadership of the GBank subsidiary will remain unchanged after the completion of the transaction, with the agreement still subject to regulatory and company shareholder approval. Additionally, the transaction is dependent on other customary conditions that are outlined in the definitive merger agreement. Also, a Fairness Opinion has been issued to the disinterested board committee of BCS and GBank’s Board of Directors. The press release also mentions that the closure of the transaction is expected to take place in the second quarter of 2024.

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