Why Shares of Bryn Mawr Bank Shot Up Today

Shares of Bryn Mawr Bank (NASDAQ: BMTC), a small bank in Pennsylvania with $5.4 billion in assets, shot up more than 14% today after it announced that it will be acquired by WSFS Financial (NASDAQ: WSFS). Shares of WSFS closed the day slightly higher.

WSFS Financial, a bank based in Wilmington, Delaware, with nearly $14 billion in assets, will acquire Bryn Mawr in an all-stock transaction for more than $976 million, valuing Bryn Mawr at roughly $48.55 per share.

The purchase price values Bryn Mawr at a rich multiple of roughly 229% of tangible book value, which is a company's equity minus goodwill and intangible assets.

Source Fool.com