First Horizon Corp (NYSE:FHN) is trading higher Monday after The Toronto-Dominion Bank (NYSE:TD) signed a definitive agreement to acquire the company for $25 per share in an all-cash transaction.
The transaction, which is expected to close in the first quarter of TD's 2023 fiscal year, is valued at $13.4 billion. TD aims to accelerate its long-term growth strategy in the U.S. by acquiring the regional bank, which has aligned culture and risk-management framework.
"We have built a very strong business at First Horizon, and by joining forces with TD, we will create extraordinary value for our key stakeholders with a shared customer-centric strategy, enhanced scale and a broader product set for our clients. This is a true growth story," said Bryan Jordan, president and CEO of First Horizon.
Upon closing, Jordan is set to join TD as vice chair. The transaction is expected to result in a fully-synergized return on invested capital of 10% in 2023.
First Horizon is the parent company of First Tennessee Bank, a prominent regional bank with about 200 branches in and around Tennessee.
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FHN Price Action: First Horizon has traded as low as $14.67 and as high as $19.45 over a 52-week period.
The stock was up 28.5% at $23.46 Monday afternoon.
