PlainsCapital Corporation, the parent company of PlainsCapital Bank, has acquired First Southwest Holdings, the holding company which owns the financial advisory and investment bank First Southwest, in a stock-for-stock merger.
The transaction is expected to enhance equity, funding and profitability for both companies and to be immediately accretive to PlainsCapital’s earnings.
The merger of PlainsCapital Corporation and First Southwest Holdings brings together an array of complementary services and creates a diversified, independent financial services company with assets of $4 billion. The transaction reportedly gives PlainsCapital Bank a national platform for future growth.
Alan White, chairman and CEO of PlainsCapital Corporation, said: For strong and stable companies such as PlainsCapital and First Southwest, tremendous opportunities for growth often present themselves. Together, we can act on those opportunities and create more value for our shareholders, customers and employees.
He further added that “The additional capital along with the additional fee income generated by the public finance and investment banking business strengthens our already strong and stable bank”.
PlainsCapital Bank is a commercial and private bank that specialises in serving middle market companies and high net worth individuals.
First Southwest Company is a boutique investment bank specializing in public finance, correspondent clearing, capital markets and asset management.
