On Wednesday, San Francisco-based Union Bank, a unit of
UnionBanCal Corp. agreed to acquire Atlanta-based Smartstreet, a
financial services division of
PNC Financial Services Group
). UnionBanCal Corp. is a fully owned subsidiary of
Mitsubishi UFJ Financial Group Inc.
), also known as MUFG.
Union Bank is a leader in providing banking services to
homeowners' associations on the West Coast. With the aim of
expanding operations internationally, the bank decided to enter the
Smartstreet, a provider of banking services to homeowners
associations and community association management companies
worldwide, became a part of PNC Financial in March 2012, at the
time of purchase of RBC Bank (USA), the U.S. retail banking
Royal Bank of Canada
Smartstreet, a leader in community associations banking services
with deposit base worth $1 billion, provides services such as
banking and account management, payment processing and lockbox
services, association loans and lines of credit, credit card
services as well as website hosting and designs.
The financial terms of the agreement were undisclosed and it
still awaits approval from the banking regulators and other
customary closing conditions. The deal is anticipated to close at
the end of 2012.
The acquisition of Smartstreet would enhance Union Bank's
strategy to provide banking services globally, with the help of its
deep-rooted knowledge and excellence. Moreover, this acquisition,
along with the buyout of Klik Technologies, reflects Union Bank's
aim to provide best-in-class widespread receivables offering.
Smartstreet's solid base of core deposits and its leadership in
HOA banking services would enable Union Bank to gain instant and
long-term benefits. Moreover, Union Bank, Klik Technologies and
Smartstreet would jointly be in an advantageous position to achieve
receivables and national lockbox processing synergies
However, Smartstreet will retain its brand in the markets and
work with its existing executive team, operating as a unit of Union
The completion of transaction will combine Smartstreet and Union
Bank's banking services and would help serving the widespread
client portfolio across the United States. The combined entity
would ensure the offering of a wide and improved array of products,
which will lead to industry-wide growth, internationally.
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