Bancorp of New Jersey’s $113 Million Merger with ConnectOne Bancorp

Keefe, Bruyette & Woods, Inc., a Stifel Company, served as financial advisor to ConnectOne and Squire Patton Boggs (US) LLP served as its legal counsel. Sandler O’Neill & Partners, L.P. served as financial advisor to Bancorp of New Jersey and Holland & Knight LLP served as its legal counsel.

Bancorp of New Jersey is the holding company for Bank of New Jersey, which provides traditional commercial and consumer banking products and services. The bank’s corporate office is in Englewood Cliffs and it currently operates out of nine branch offices throughout the state.

ConnectOne Bancorp, through its subsidiary ConnectOne Bank, offers a full suite of both commercial and consumer banking and lending products and services through its 29 banking offices located in New York and New Jersey.

The transaction reflects an in-market acquisition of an institution similar in several ways including its focus on commercial clients, location of its offices, and its core processing provider. The acquisition is intended to accelerate ConnectOne’s strategic focus on increasing client relationships, capitalizing on growth opportunities throughout the Company’s New York and New Jersey target metropolitan market, and maintaining best-in-class efficiency. Enhanced scale from the transaction is designed to further leverage ConnectOne’s leading technology infrastructure to drive efficiencies, and position ConnectOne for additional future growth.

Under the terms of the agreement, Bancorp of New Jersey shareholders will have the right to receive, for each share of Bancorp of New Jersey common stock either 0.78 shares of ConnectOne common stock or $16.25 in cash. Bancorp of New Jersey shareholders will have the right to elect all stock consideration, all cash consideration or a combination thereof, subject to customary pro-ration procedures which will result in an aggregate stock/cash consideration mix of 80%/20%. The transaction is presently valued at approximately $113 million in the aggregate, or approximately $15.48 per Bancorp of New Jersey share, based upon the closing common stock price of $19.60 for ConnectOne Bancorp as of August 15, 2019.

Effective at the closing of the transaction, one current director of Bancorp of New Jersey’s board will join the Board of Directors of both ConnectOne Bancorp, Inc. and ConnectOne Bank.

Holland & Knight advised Bancorp of New Jersey with a team led by partners Paul Aguggia (Picture) and Amy Leder. They are being assisted by senior counsel Nicholas Brunero, associate Nicole Tedesco, and partners Kerry Halpern and Bill Sherman.

Involved fees earner: Paul Aguggia – Holland & Knight; Nicholas Brunero – Holland & Knight; Kerry Halpern – Holland & Knight; Amy Leder – Holland & Knight; William Sherman – Holland & Knight; Nicole Tedesco – Holland & Knight;

Law Firms: Holland & Knight;

Clients: Bancorp of New Jersey;

Author: Ambrogio Visconti