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Everett, Wash.-based Frontier Financial Corp. ($3.58 billion) said July 25 that it agreed to acquire Salem, Ore.-based Bank of Salem ($210.2 million) in a deal valued by the companies at $68.9 million.
Under the terms of the deal, Frontier will issue 0.99 share of its common stock for each outstanding Bank of Salem share, subject to adjustment based on Frontier's average closing price within a $21.21 to $29.17 range ahead of closing. Options will be cashed out at closing. Using a July 24 closing price of $20.39 and 3,263,221 common shares outstanding as of July 25, SNL calculates a deal value per share of $20.19 and an aggregate deal value of approximately $65.9 million. The price represents a 9.1% premium to Bank of Salem's July 24 closing price and a 6.2% premium to its June 25 closing price.
On a...