Atlantic Union to buy Sandy Spring Bancorp in a deal worth $1.6 billion

Atlantic Union Bankshares will buy smaller rival Sandy Spring Bancorp in an all-stock deal worth $1.6 billion, as the regional lender looks to bolster its presence in Northern Virginia and Maryland.

The combination will create the largest regional bank headquartered in the lower Mid-Atlantic with $39.2 billion in assets, the companies said on Monday.

The transaction is the latest in a string of $1 billion-plus bank deals this year as consolidation among regional lenders gathers pace to boost scale and shore up balance sheets to better compete against bigger rivals.

Sandy Spring shareholders will receive 0.900 shares of Atlantic Union for each held, valuing the lender at $34.93 apiece based on Atlantic’s last close.

The offer represents a 7.1% premium to Sandy Spring’s last close. Its shares rose 3% in premarket trading.

The deal will also nearly double Atlantic Union’s wealth business by boosting assets under management by more than $6.5 billion.

Founded in 1868, Olney, Maryland-based Sandy Spring managed $14.4 billion in assets, as of Sept. 30.

Three Sandy Spring executives, including CEO Dan Schrider, will join Atlantic Union’s board after the deal closes, which is expected by the end of third quarter of 2025.

Separately in the day, Richmond, Virginia-based Atlantic Union said it priced a public offering of nearly 9.9 million shares at $35.50 per share to raise $350 million.

Morgan Stanley and Davis Polk advised Atlantic Union, while Keefe, Bruyette & Woods and Kilpatrick Townsend & Stockton advised Sandy Spring.