M&A Deal Summary

Umpqua Bank Acquires Sterling Financial

On April 18, 2014, Umpqua Bank acquired financial services company Sterling Financial from Warburg Pincus and Thomas H. Lee Partners for 2.0B USD

Acquisition Highlights
  • This is Umpqua Bank’s 10th transaction in the Financial Services sector.
  • This is Umpqua Bank’s largest (disclosed) transaction.
  • This is Umpqua Bank’s 10th transaction in the United States.
  • This is Umpqua Bank’s 1st transaction in Pennsylvania.

M&A Deal Summary

Date 2014-04-18
Target Sterling Financial
Sector Financial Services
Buyer(s) Umpqua Bank
Sellers(s) Warburg Pincus
Thomas H. Lee Partners
Deal Type Add-on Acquisition
Deal Value 2.0B USD
Advisor(s) Sandler O'Neill + Partners LP (Financial)
Davis Polk & Wardwell (Legal)

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) 1

Buyer

Umpqua Bank

Portland, Oregon, United States

Category Company
Founded 1953
Sector Financial Services
Employees3,410
Revenue 1.3B USD (2022)
DESCRIPTION

Umpqua Holdings operates as the holding company for Umpqua Bank and Umpqua Investments, Inc. which provide commercial and retail banking, and brokerage services to corporate, institutional, and individual customers in the United States. Umpqua Bank was founded in 1953 and is based in Portland, Oregon.


DEAL STATS #
Overall 10 of 10
Sector (Financial Services) 10 of 10
Type (Add-on Acquisition) 10 of 10
State (Pennsylvania) 1 of 1
Country (United States) 10 of 10
Year (2014) 1 of 1
Size (of disclosed) 1 of 10
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-06-04 Financial Pacific Leasing

Federal Way, Washington, United States

Financial Pacific Leasing, Inc. is a commercial finance company that leases equipment to small businesses.

Buy $158M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-04-23 Umpqua Investments

Portland, Oregon, United States

Umpqua Investments is a registered broker-dealer and registered investment adviser, based in Portland, Oregon.

Sell -

Seller(S) 2

SELLER

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 102 of 251
Sector (Financial Services) 7 of 19
Type (Add-on Acquisition) 39 of 90
State (Pennsylvania) 3 of 4
Country (United States) 67 of 137
Year (2014) 3 of 9
Size (of disclosed) 13 of 63
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-04-17 Electronic Funds Source

Ogden, Utah, United States

Electronic Funds Source LLC is a provider of innovative and customized corporate payment technology solutions.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-04-24 PayScale

Seattle, Washington, United States

PayScale, Inc. offers modern compensation software and the most precise, real-time, data-driven insights for employees and employers alike. PayScale was founded in 2002 and is based in Seattle, Washington.

Buy -
SELLER

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 27 of 54
Sector (Financial Services) 1 of 1
Type (Add-on Acquisition) 10 of 18
State (Pennsylvania) 3 of 4
Country (United States) 19 of 45
Year (2014) 2 of 4
Size (of disclosed) 7 of 21
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-03-17 Grupo Corporativo ONO S.A.

Madrid, Spain

Grupo Corporativo ONO S.A. is a broadband service provider. It offers direct access telephony, pay television and internet access services to the residential market where, ONO offers advanced voice, data and value-added services across its own high capacity local access and national backbone networks.

Sell €7.2B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-05-28 Prime Risk Partners

Alpharetta, Georgia, United States

Prime Risk Partners is a provider of insurance distribution platform through selective acquisitions, strategic new hires, and thoughtful operations. Prime Risk Partners was founded in 2014 and is based in Alpharetta, Georgia.

Buy -