On Wednesday, San Francisco-based Union Bank, a unit of UnionBanCal Corp. agreed to acquire Atlanta-based Smartstreet, a financial services division of PNC Financial Services Group Inc. (PNC). UnionBanCal Corp. is a fully owned subsidiary of Mitsubishi UFJ Financial Group Inc. (MTU), also known as MUFG.
Union Bank is a leader in providing banking services to homeowners' associations on the West Coast. With the aim of expanding operations internationally, the bank decided to enter the abovementioned deal.
Smartstreet, a provider of banking services to homeowners associations and community association management companies worldwide, became a part of PNC Financial in March 2012, at the time of purchase of RBC Bank (USA), the U.S. retail banking subsidiary of Royal Bank of Canada (RY).
Smartstreet, a leader in community associations banking services with deposit base worth $1 billion, provides services such as banking and account management, payment processing and lockbox services, association loans and lines of credit, credit card services as well as website hosting and designs.
The financial terms of the agreement were undisclosed and it still awaits approval from the banking regulators and other customary closing conditions. The deal is anticipated to close at the end of 2012.
The acquisition of Smartstreet would enhance Union Bank’s strategy to provide banking services globally, with the help of its deep-rooted knowledge and excellence. Moreover, this acquisition, along with the buyout of Klik Technologies, reflects Union Bank’s aim to provide best-in-class widespread receivables offering.
Smartstreet’s solid base of core deposits and its leadership in HOA banking services would enable Union Bank to gain instant and long-term benefits. Moreover, Union Bank, Klik Technologies and Smartstreet would jointly be in an advantageous position to achieve receivables and national lockbox processing synergies nationwide.
However, Smartstreet will retain its brand in the markets and work with its existing executive team, operating as a unit of Union Bank.
The completion of transaction will combine Smartstreet and Union Bank’s banking services and would help serving the widespread client portfolio across the United States. The combined entity would ensure the offering of a wide and improved array of products, which will lead to industry-wide growth, internationally.
MITSUBISHI-UFJ (MTU): Free Stock Analysis Report
PNC FINL SVC CP (PNC): Free Stock Analysis Report
ROYAL BANK CDA (RY): Free Stock Analysis Report
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