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LendingClub to acquire Radius Bancorp in $185m deal

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Christian Fernsby ▼ | February 20, 2020
LendingClub has agreed to acquire Boston based Radius Bancorp and wholly owned subsidiary Radius Bank in a cash and stock deal valued at $185 million.
Acquisition   LendingClub
To facilitate compliance with federal banking regulations and prevent delays in closing the deal, the LendingClub board has adopted a temporary bank charter protection agreement to deter stock positions above certain thresholds established by the Federal Reserve under the Bank Holding Company Act.

Topics: LendingClub acquire Radius Bancorp

Those thresholds provide for the dilution of any person or group who acquires 25% or more equity interest in LendingClub or 7.5% or more of any class of LendingClub's voting securities, which automatically increases to 10% under the agreement.

Those already above these thresholds are grandfathered in at their current levels.

The agreement expires when the deal closes or after 18 months, whichever is earlier.

Additionally, LendingClub approved a dividend distribution of 1 purchase right for each of its outstanding shares as of March 19.