Veritex Holdings, Inc. (NASDAQ: VBTX) disclosed that it has acquired StoneCastle Cash Insured Sweep, LLC doing business as interLINK which is a subsidiary of StoneCastle Partners, LLC (StoneCastle), mainly for Veritex common stock and cash in a transaction worth nearly $91 million.

interLINK is a unique software platform designed specifically for bank treasury. Its technology is extremely adaptable, enabling customized integration with broker/dealer systems and client service that is second to none. Following its acquisition, Veritex will be able to offer a variety of additional services to brokers/dealers, such as private banking, securities financing, and other credit or banking services.

Veritex and interLINK are an ideal match for a high-growth commercial bank and a tech-enabled core deposit collection platform. For some of the country's largest broker and clearing firms, interLINK manages about $8 billion in deposits through FDIC-insured cash sweep programs. InterLINK will enable flexible and scalable access to about $5.7 billion in broadly diverse, stable core deposits once it is merged into Veritex's treasury function.

Transaction Overview

Veritex will pay $3 million in cash for interLINK and issue StoneCastle nearly 2 million shares of its common stock under the terms of the transaction. StoneCastle will recognize a taxable sale and will own minority ownership in Veritex of about 4% after the transaction closes. Veritex also aims to launch a $150 million common stock offering in conjunction with this announcement, with the net profits going toward ongoing growth and general business objectives.