Leading transatlantic law firm Womble Bond Dickinson is representing North Avenue Capital, LLC in its acquisition by Veritex Holdings, Inc., the parent holding company of Veritex Community Bank. North Avenue Capital is a government guaranteed lender that originates and services loans exclusively through the U.S. Department of Agriculture Business & Industry (USDA B&I) guaranteed loan program within the USDA Rural Development Program.
Under the definitive agreement announced on September 21, a newly formed subsidiary of Veritex Community Bank will acquire North Avenue Capital and, after closing, the company will continue to operate under its current name and brand as a wholly owned subsidiary of Veritex Community Bank.
Under the terms of the agreement, upon completion of the merger, Veritex will pay $57.5 million in cash to existing shareholders of North Avenue Capital, subject to adjustment. Three years after the completion of the transaction, North Avenue Capital has the right, subject to adjustment, to receive an additional $5 million in cash subject to certain performance measures. The transaction is expected to close in the fourth quarter of 2021.
The multidisciplinary Womble Bond Dickinson team that advised North Avenue Capital, LLC was led by corporate partner Eric Glidewell, corporate counsel Joy Holloway, and capital markets associate Sylvester Kisluk. The team also included employee benefits partner Patrick Allen, tax partner Jeff Lawyer, labor and employment partner Theresa Sprain, and intellectual property partner Mike Tobin.
About Womble Bond Dickinson’s Financial Services Sector Team
At Womble Bond Dickinson, we are proud to work with some of the largest and longest-standing financial institutions in the world. With more than 200 financial services sector lawyers located across the US and the UK, we offer a wealth of industry experience and market knowledge to serve your commercial and regulatory needs. In fact, we represent nearly half of the top 100 US banks and 17 of the top 25 US banks. This experience, coupled with our cutting-edge approach to technology, staffing and AI as well as our progressive view toward competitive rate structures, position us as a strategic partner to clients operating in the constantly evolving financial services landscape. Learn more.