UPDATE 1-Independent Bank Group to buy Texas Capital Bancshares for about $3 bln

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(Reuters) – Independent Bank Group Inc (IBTX.O) said on Monday it would buy rival Texas Capital Bancshares Inc (TCBI.O) in an all-stock deal valued at about $3 billion, as the U.S. regional bank looks to diversify its customer base.

The offer price of $61.10 per share represents a 5.5% premium to Texas Capital’s Friday close.

The combined company, which will have about $48 billion in assets and $39 billion in deposits, will be led by David Brooks, chief executive officer of Independent Bank Group.

Several U.S. banks are relying on acquisitions to offset the impact of falling interest rates and sluggish loan growth.

The deal, which is expected to close in mid-2020, will add 26% to Independent Bank Group’s earnings per share and 14% to Texas Capital’s EPS by the first full year after the transaction closes, the companies said in a statement.

The two companies are calling it a merger of equals, valued at $5.5 billion.

Jefferies and Goldman Sachs & Co are financial advisers to Texas Capital, while Keefe, Bruyette & Woods advised Independent Bank.

Reporting by C Nivedita in Bengaluru; Editing by Shinjini Ganguli and Anil D’Silva

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