M&A Update: Fifth Third Buys Healthcare Fintech
Plus: Shore United Bank gets green light for community bank purchase; LINKBANCORP to acquire Partners Bancorp
- Written by Banking Exchange staff
Fifth Third Bancorp has acquired a healthcare fintech company as it seeks to enhance its offering in the healthcare sector.
The banking and financial services giant has announced the acquisition of Big Data Healthcare, which specializes in “healthcare payments and remittance”, according to a statement from Fifth Third.
“The healthcare industry is one of the largest and fastest growing segments of the US economy. It’s the first and the largest of our industry focus areas,” said Kevin Lavender, head of commercial banking at Fifth Third Bank. “Together, we can deliver a specialized client experience driven by innovation.”
The fintech company, founded in 2017, will become part of Fifth Third’s Treasury Management and Commercial Banking business. No financial terms were disclosed.
Meanwhile, Maryland-based Shore Bancshares has been given the green light by regulators for its planned acquisition of The Community Financial Corporation (TCFC).
Shore Bancshares is the holding company for Shore United Bank, while TCFC owns Community Bank of the Chesapeake, which will be merged into Shore United Bank following completion of the deal, expected on July 1, 2023. The deal is still subject to approval from Shore Bancshares’ shareholders.
Separately, Pennsylvania-headquartered LINKBANCORP is to buy Partners Bancorp in a $167.8 million deal, the two organizations announced last month.
Partners Bancorp is the parent company to The Bank of Delmarva and Virginia Partners Bank, both of which will merge into LINKBANK and assume this brand. Upon completion, the combined company will have almost $3 billion in assets.
John Breda, president, CEO, and director of Partners Bancorp, said the transaction “accelerates our strategic objectives to create the leading community bank headquartered in the Mid-Atlantic markets”.
He added: “Our combined size and resources will significantly enhance our scale and ability to help customers through higher lending limits and greater investment in technology, and will increase career opportunities for employees.”
Breda will be CEO for the Delmarva market following completion of the deal. The combined group will be led by Andrew Samuel as CEO. The merger is expected to close in the third quarter of 2023, subject to regulatory and shareholder approvals.
Finally, Illinois-based Longview Community Bank is to merge with fellow Illinois bank, Bank of Chestnut. According to a statement on the latter’s website, the merger will take place “in the spring of 2023” with Longview “continue[ing] to offer expanded banking services in Chestnut with the same great people”. No other details have been published.
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