Multi-bank holding company QCR Holdings has signed agreements to acquire Bates Financial Advisors, Bates Financial Services, Bates Securities, and Bates Financial Group, in a cash and stock deal valued at approximately $6m.

Under the terms of the deal, QCR Holdings (QCRH) will buy 100% of the Bates companies’ outstanding common stock for an aggregate consideration of $3m cash and up to $3m of its common stock.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

QCRH noted that the acquisition and ensuing merger of the Bates companies into its wholly owned bank subsidiary Rockford Bank & Trust (RBT) will enhance the wealth management services of RBT.

As of 31 December 2017, the Bates companies had about $700m of assets under management.

QCRH president and CEO Douglas Hultquist said: “QCR Holdings believes the Bates Companies acquisition will provide RBT clients with additional financial services options while growing RBT’s client base and partnering with a legacy financial advisor such as the Bates Companies is a good strategic fit.”

QCRH COO  and CFO Todd Gipple said: “As one of our key strategies to drive shareholder value, QCR Holdings seeks to participate as an acquirer to further boost ROA and increase earnings per share.  We believe acquiring the Bates Companies will add to the value and growth of our company.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The transaction is likely to be 0.3% accretive to QCRH’s earnings per share (EPS) in the first full year after the acquisition excluding the impact of future consideration.

The internal rate of return is expected to be greater than 15%, the acquiring, the acquiring firm said.

Subject to regulatory approval and certain closing conditions, the transaction is scheduled to be completed during the second quarter or early third quarter of 2018.