Heritage Commerce in San Jose, California, has agreed to buy the parent company of factoring firm Bay View Funding.
The $1.5 billion-asset Heritage Commerce will pay $22.5 million in cash for the $43.8 million-asset BVF/CSNK Acquisition.
Bay View Funding, based in Santa Clara, California, provides working capital factoring financing to various industries throughout the United States.
The deal "further diversifies Heritage's commercial product offerings," Keith Wilton, Heritage Commerce's chief operating officer, stated. "The platform is scalable and is aligned with recent key product initiatives designed to deliver a full spectrum of commercial lending products to our markets."
Heritage Commerce said it expects to incur pretax merger-related costs of $1 million to $1.3 million.
Heritage Commerce was advised by Buchalter Nemer and Keefe, Bruyette & Woods.