M&A Deal Summary

Warburg Pincus and Thomas H. Lee Partners Acquire Sterling Financial

On August 26, 2010, private equity firms Warburg Pincus and Thomas H. Lee Partners acquired financial services company Sterling Financial from PNC for 730M USD

Acquisition Highlights
  • This is Warburg Pincus’ 10th and Thomas H. Lee Partners’ 3rd transaction in the Financial Services sector.
  • This is Warburg Pincus’ 20th and Thomas H. Lee Partners’ 25th largest (disclosed) transaction.
  • This is Warburg Pincus’ 94th and Thomas H. Lee Partners’ 28th transaction in the United States.
  • This is Warburg Pincus’ 3rd and Thomas H. Lee Partners’ 4th transaction in Pennsylvania.
Investment Fate
  • Sterling Financial was sold to a publicly-traded strategic buyer in 2014 for 2.0B USD.

M&A Deal Summary
Date 2010-08-26
Target Sterling Financial
Sector Financial Services
Buyer(s) Warburg Pincus
Thomas H. Lee Partners
Sellers(s) PNC
Deal Type Recapitalization
Deal Value 730M USD

Target

Sterling Financial

Lancaster, Pennsylvania, United States
Sterling Financial Corp. a bank holding company for Sterling Savings Bank, a state-chartered and federally insured commercial bank. Sterling offers banking products and services, mortgage lending, construction financing and investment products to individuals, small businesses, commercial organizations and corporations. Sterling operates 178 deposit-taking branches in Washington, Oregon, Idaho, Montana and California.

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Buyer(S) 2

Buyer

Warburg Pincus

New York, New York, United States

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 1966
PE ASSETS 83.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Warburg Pincus is a mega-sized, global private equity firm focused on investment opportunities across North America, Asia, and Europe. Warburg will consider investing at various company stages, from early-stage opportunities to distressed situations. Warburg Pincus is organized by industry groups. Verticals include financial services, healthcare, technology, media & telecommunications, energy, consumer & industrial, and real estate. Within financial services, Warburg will consider asset/wealth managers, banks, exchanges, financial technology, insurance, transaction processing, private banking, and specialty/consumer finance. Within healthcare, specific areas of interest include medical devices, healthcare services, and biotech/pharmaceuticals. Within technology/media/communications, Warburg targets software, media/internet/information, financial technology, telecom, business services, and systems/semiconductors. Within energy, specific areas of interest include oil/gas exploration, power generation/transmission, and alternative energy. Warburg Pincus raised its first fund in 1966 and is based in New York City.

DEAL STATS #
Overall 170 of 482
Sector (Financial Services) 10 of 47
Type (Recapitalization) 2 of 7
State (Pennsylvania) 3 of 9
Country (United States) 94 of 237
Year (2010) 19 of 32
Size (of disclosed) 20 of 47
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-08-02 SCM Insurance Services

Edmonton, Alberta, Canada

SCM Insurance Services is a provider of claims adjusting, third-party adjusting (TPA), risk management, investigative, surveillance, risk mitigation, medical services, forensic engineering services, and risk intelligence. SCM Insurance Services was formed in 1986 and is based in Edmonton, Alberta.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-09-07 Cortview Capital Securities

Richmond, Virginia, United States

Cortview Capital Securities LLC (“CCS”) is a fixed-income focused broker-dealer, based in Richmond, VA, with offices in New York, Charlotte, NC and Boca Raton, FL, dedicated to providing superior, regionally-focused sales, trading, origination, securitization and advisory services to a national, middle-markets client base. CCS is a wholly-owned subsidiary of Cortview Capital Holdings, Inc., which is a portfolio company of Warburg Pincus.

Buy -
Buyer

Thomas H. Lee Partners

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 1974
PE ASSETS 35.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Thomas H. Lee Partners (THL) is a private equity firm that seeks buyout, expansion, consolidation, distressed, and recapitalization investments across various industries. Sectors of interest include business and information services, consumer products/retail, financial services, healthcare, industrial, and media/communications. THL looks to invest $100 to $400 million in companies valued up to $2.5 billion. THL was formed in 1974 and is based in Boston, Massachusetts.

DEAL STATS #
Overall 36 of 90
Sector (Financial Services) 3 of 6
Type (Recapitalization) 3 of 11
State (Pennsylvania) 4 of 8
Country (United States) 28 of 77
Year (2010) 4 of 5
Size (of disclosed) 25 of 28
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-08-04 inVentiv Health

Burlington, Massachusetts, United States

inVentiv Health, Inc. is a provider of best-in-class clinical, commercial and consulting services to companies seeking to accelerate performance. inVentiv offers convergent services that deliver extraordinary outcomes to clients whose goal is improving human life.

Buy $1.2B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-10-30 Systems Maintenance Services

Charlotte, North Carolina, United States

Systems Maintenance Services is a global provider of multivendor IT asset lifecycle services and support solutions. SMS’ advanced service portfolio includes: asset management, deployment, relocation, disposition, recycling, erasure, maintenance, and managed network and VOIP services. SMS supports more than 3,000 clients globally with physical locations across North America, Asia and Europe. SMS’ solutions include support for most datacenter brands including Cisco, IBM, HP, Dell, Oracle, EMC, Hitachi, NetApp, Lexmark and Xerox. Systems Maintenance Services was founded in 1981 and is based in Charlotte, North Carolina.

Buy -

Seller(S) 1

SELLER

PNC

Pittsburgh, Pennsylvania, United States
Category Company
Founded 1852
Sector Financial Services
Employees53,932
Revenue 21.5B USD (2023)
DESCRIPTION
PNC's corporate headquarters in downtown Pittsburgh, Pennsylvania.
PNC's corporate headquarters in downtown Pittsburgh, Pennsylvania.

PNC is a diversified financial services organizations providing consumer and business banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management; asset management and global fund services. PNC was formed in 1922 and is based in Pittsburgh, Pennsylvania. PNC was founded in 1852 and is based in Pittsburgh, Pennsylvania.

DEAL STATS #
Overall 3 of 5
Sector (Financial Services) 3 of 5
Type (Recapitalization) 1 of 1
State (Pennsylvania) 1 of 3
Country (United States) 3 of 5
Year (2010) 1 of 1
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-07-01 Albridge

Pennington, New Jersey, United States

Albridge is a provider of data management and financial technology solutions for financial services companies. Using patent-pending, state-of-the-art technology, Albridge Solutions collects, cleanses, and normalizes the transaction and position-level securities data it receives from settlement and clearing firms, data custodians, product companies as well as internal proprietary systems. Albridge was founded in 1999 and is based in Pennington, New Jersey.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-06-20 RBC Bank

Raleigh, North Carolina, United States

RBC Bank (USA), Inc. is a provider of financial services and advice to individuals, businesses, and public institutions in the Southeast.

Buy $3.5B
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