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MetaFinancial to acquire EPS Financial

Meta FinancialGroup Inc. and unit MetaBank agreed to acquire the assets and certainliabilities of Easton, Pa.-based EPS Financial LLC, a subsidiary of DrakeEnterprises Ltd.

EPS Financial is a provider of tax-related financialtransaction services.

The deal, expected to close in the fourth quarter, is valuedat approximately $42.5 million and will be paid half in stock and half in cash.

EPS Financial employees will join MetaBank and remain inEaston after the completion of the merger, according to an Oct. 3 news release.

Meta Financial expects that the transaction will beaccretive to earnings per share in the first full year by 10%. Additionally, itexpects approximately 12% tangible book value dilution with an earn-back periodof approximately four years. The company said the earn-back period could be"substantially shorter" with efficiencies realized from thetransaction.

MetaBank was advised by Sandler O'Neill & Partners LPand the law firm of Katten Muchin Rosenman LLP. Drake Enterprises was advisedby Deloitte Corporate Finance LLC and the law firm of Chambliss Bahner &Stophel PC.