Financials Company Orrstown Finl Servs Announces Merger With Codorus Valley Bancorp
Orrstown Finl Servs (NASDAQ:ORRF) has announced a merger with Codorus Valley Bancorp (NASDAQ:CVLY) that is expected to be completed in Q3 of 2024.
Under the terms of the agreement, Orrstown Finl Servs has agreed to give Codorus Valley Bancorp $207.00 million in stock in exchange for CVLY stock.
About The Companies Involved
Orrstown Financial Services Inc is a holding company engaged in commercial banking and trust business, this involves accepting demand, time and savings deposits, and granting loans. It is also engaged in lending services for commercial, residential, commercial mortgages, construction, municipal, and various forms of consumer lending.
Codorus Valley Bancorp Inc is a United States-based bank holding company. Through its subsidiary, it offers a full range of consumer, business, wealth management, and mortgage services at financial centers located in communities throughout South Central Pennsylvania and Central Maryland.
How A Merger Works
A merger happens when a company combines operations with another company. In practice, one company will buy the other company's stock in exchange for its own stock. In some cases, cash is used to pay for the company's stock but usually the companies agree to a stock-for-stock transaction.
Due to the exchange and acquisition of stock, a merger is similar to an acquisition. This is why the two terms are commonly grouped together as mergers and acquisitions (M&A). However, in a merger, the leadership & operations of both companies usually change dramatically, while during an acquisition this is less likely to happen.
Make sure to follow our mergers & acquisitions calendar to stay-up-to-date on the most recent M&A deals.
This article was generated by Benzinga's automated content engine and reviewed by an editor.