Triumph's (TBK) TriumphPay to Acquire HubTran, Stock Up 13.6%

TriumphPay — a division of Triumph Bancorp’s TBK operating subsidiary TBK Bank SSB — recently announced a deal to acquire HubTran for $97 million in cash. Since this announcement last week, shares of Triumph Bancorp have rallied 13.6%.

The deal to buy Chicago-based HubTran, which provides cloud-based automation software for the transportation industry's back-office, is subject to customary purchase price adjustments and closing conditions. Moreover, the deal, expected to close in the second quarter of 2021, is still subject to regulatory approval and customary closing conditions.

The acquisition will create additional value through the improvement of TriumphPay’s “presentment, settlement, and payment capabilities for shippers, 3PL’s and their carriers, and factors.” Further, HubTran's artificial intelligence and machine-learning capabilities will act as tailwinds for the company.

Aaron P. Graft, CEO of Triumph Bancorp, said, “This acquisition, and the subsequent integration of HubTran's powerful settlement capabilities into our platform, underscores Triumph's commitment to the transportation industry. It brings with it existing integrations with over 230 freight brokerage and 50 factoring clients and will materially advance our strategy to create a seamless payment experience.

Per TriumphPay CEO, Jordan Graft, "Combining TriumphPay and HubTran will allow us to create a fully integrated payments network for transportation servicing brokers and factors.”

Since 2015, Triumph Bancorp has been engaged in a number of strategic acquisitions, which reflects its solid balance sheet and liquidity position. These expansion initiatives will continue to support its profitability and market share as well as help diversify revenues.

Over the past six months, shares of the company have soared 139%, outperforming 70.5% growth recorded by the industry.

Currently, Triumph Bancorp carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Similar Moves by Other Banks

In order to boost its payment offerings for healthcare clients, Bank of America BAC has acquired Axia Technologies, Inc.
Further, shareholders of Huntington Bancshares Incorporated HBAN and TCF Financial Corporation TCF have approved the all-stock acquisition deal, which is likely to close in the second quarter of 2021.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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