Atlantic Union to Acquire Sandy Spring Bancorp in $1.6 Billion All-Stock Deal

Virginia-based Atlantic Union Bankshares Corporation (NYSE: AUB) has announced its plans to acquire Maryland-based Sandy Spring Bancorp (Nasdaq: SASR) in a deal worth approximately $1.6 billion. The merger, set to be finalized by the end of the third quarter of 2025, will create the largest bank in the lower Mid-Atlantic region, with a significant presence in Northern Virginia and Maryland.

 Sandy Spring, founded in 1868, currently holds $14.4 billion in assets, $11.7 billion in total deposits, and $11.5 billion in total loans, while Atlantic Union will approximately double its wealth business through the acquisition. Each share of Sandy Spring common stock will be converted into 0.900 shares of Atlantic Union common stock, valuing the deal at around $34.93 per Sandy Spring common share based on Atlantic Union's closing stock price on October 18, 2024. The transaction is subject to customary closing conditions, regulatory approvals, and approval by both companies' shareholders and stockholders.

The merger has garnered unanimous approval from the board of directors of both Atlantic Union and Sandy Spring. The combined company will have pro forma total assets of $39.2 billion, total deposits of $32.0 billion, and gross loans of $29.8 billion as of September 30, 2024. The merger will also add 53 branch locations, bolstering the companies' Mid-Atlantic banking footprint. Atlantic Union's third-quarter earnings call will feature discussions about the acquisition, and presentation slides for the conference call are available on both Atlantic Union's and Sandy Spring's investor websites.

Morgan Stanley & Co. LLC is serving as financial advisor to Atlantic Union, while Davis Polk & Wardwell LLP is acting as the legal advisor in the transaction. Sandy Spring has engaged Keefe, Bruyette & Woods, Inc., A Stifel Company, as its financial advisor, and Kilpatrick Townsend & Stockton LLP as the legal advisor in the deal. The acquisition is part of Atlantic Union's long-term vision to expand its regional banking presence in the lower mid-Atlantic and Southeast regions, while Sandy Spring believes the partnership will provide enhanced scale and capabilities for its clients. Both companies are committed to creating long-term shareholder value through the merger. The deal is expected to deliver greater opportunities for employee growth within the larger organization.