United Bankshares to acquire Cardinal Bank for $912 million

Published August 18, 2016 by Jessica Sabbath

United Bankshares Inc. announced Thursday it will acquire Tysons Corner-based Cardinal Financial Corp., becoming the largest community bank in the Washington, D.C., area.

The all-stock deal is worth $912 million.

United, which has headquarters in Washington, D.C., and Charleston, W.Va., said the acquisition will be its 10th in the Washington area and 31st for the current administration.

“Cardinal is one of the most successful community banks in the country and has a significant presence in one of the best markets in the U.S.A.,” Richard Adams, chairman and CEO of United Bankshares, said in a statement. “This merger aligns perfectly with our longstanding commitment to growth in the D.C. metro area.”

The company will become the 32nd largest bank in the country and will have $20 billion in assets, according to a statement on the deal. Cardinal Bank has 30 branches in Virginia, Maryland and the District of Columbia. United has 129 offices in D.C., Virginia, Maryland, Ohio, Pennsylvania and West Virginia.

United will acquire all of Cardinal’s outstanding shares, exchanging for 0.71 United shares for each Cardinal share.

Both boards of directors have approved the transaction, which is expected to close in mid-2017. The acquisition is pending regulatory and shareholder approval.

Keefe, Bruyette & Woods, Inc. served as financial adviser, and Bowles Rice LLP provided legal counsel to United.

Sandler O’Neill & Partners L.P. served as financial adviser, and LeClairRyan served as legal counsel to Cardinal.