Valley National Bancorp announced that its acquisition of Bank Leumi Le-Israel Corporation (Leumi USA), the U.S. subsidiary of Bank Leumi Le-Israel B.M. (BLITA), and parent company of Bank Leumi USA (Bank Leumi) was completed effective April 1.

The acquisition was first announced in September 2021.

Valley will issue approximately 85 million shares of common stock and pay $113 million in cash in the transaction. The common shareholders of Leumi USA will receive 3.8025 shares of Valley common stock and $5.08 in cash for each Leumi USA common share that they own.

As of Dec. 31, 2021, Bank Leumi had approximately $8.3 billion in assets, $5.8 billion of diverse commercial loans and $7.1 billion of low-cost deposits. The acquisition supplements Valley’s commercial banking expertise and provides new business capabilities in the technology banking and private banking areas. The combined institution will have enhanced scale and be well-positioned to capture diverse commercial growth opportunities throughout its markets.

“This transaction further solidifies Valley’s position as one of the premier full-service commercial banks in the country,” said Valley CEO Ira Robbins. “We are incredibly excited about the new business capabilities and the differentiated growth opportunities that Bank Leumi will bring to our combined organization. On behalf of our board of directors and our executive leadership team, I’d like to welcome Bank Leumi clients and employees to the Valley family. We look forward to continuing our journey together.”

In connection with the merger, former Bank Leumi President and CEO Avner Mendelson has joined the Board of Directors of Valley in the role of Vice-Chairman and Ronen Agassi, Head of the Corporate Division of BLITA, has also joined the Board of Directors of Valley.