South State to acquire Texas-based Independent Bank Group for $2B

SouthState (SSB) and Independent Bank Group (IBTX) have entered into a definitive agreement under which SouthState will acquire Independent Bank Group, in an all-stock transaction valued at approximately $2B. SouthState and Independent Bank will create a $65B regional bank with a presence across the Southeast, as well as in Texas and Colorado. Independent Bank, based in McKinney, Texas, has approximately $18.9B in total assets, $15.7B in total deposits and $14.6B in total loans as of March 31, and operates in four market regions located in Dallas/Fort Worth, Austin and Houston areas in Texas and the Colorado Front Range. The combined company will have pro forma total assets of $65B, deposits of $55B, gross loans of $48B upon the completion of the transaction, and a market capitalization of approximately $8.2B. Independent Bank Group shareholders will receive 0.60 shares of SouthState common stock for each outstanding share of Independent Bank Group common stock. This equates to a per share value of $48.51 and an aggregate transaction value of approximately $2B. Additionally, three Independent Bank Group directors, including David Brooks and Independent Bank Group’s Lead Independent Director Stacy Smith, will join both the SouthState Corporation board and the SouthState Bank board upon the completion of the transaction. Completion of the transaction is subject to customary closing conditions, including receipt of required regulatory approvals and the approval by shareholders of Independent Bank Group and SouthState. The transaction is expected to close by the end of 1Q25.