Veritex Holdings says its deal to buy interLINK has been terminated by the seller's parent, StoneCastle Partners in New York.
Veritex, the Dallas-based holding company for Veritex Community Bank, said in March it would acquire interLINK, a digital deposit-gathering platform, for $91 million in cash and stock.The $5.7 billion of deposits administered by interLINK's software platform was expected to have supported Veritex's
Veritex had anticipated the interLINK deal would be 8% accretive to earnings per share in 2024 and 14% accretive on a run-rate basis afterward.
However, in a regulatory filing Tuesday, Veritex said StoneCastle had nixed the deal. It did not cite a reason, but Veritex noted that regulatory pushback was not to blame. The transaction had been projected to close in the third quarter.
Veritex said in the filing that it had received approvals from the Texas Department of Banking and that, at the federal level, it had progressed "substantially" toward winning the Federal Deposit Insurance Corp.'s go-ahead before StoneCastle terminated the deal on Sept. 1.
Veritex said it is now "considering all options in connection with the termination of the agreement, including in respect of willful and material breaches of the agreement by StoneCastle."
A StoneCastle representative was not immediately available to comment.
D.A. Davidson analyst Gary Tenner said the scrapped deal created "a level of uncertainty" about Veritex's ability to fund its robust lending levels and "overall balance-sheet growth is likely to moderate."
