Harleysville National Corporation Expands with Major Acquisition Deal

The company's acquisition deal marked a significant milestone in its growth strategy, allowing it to expand its presence in the insurance industry.

This strategic move enabled Harleysville National Corporation to tap into new markets and increase its customer base.

The acquisition deal also brought in new talent and expertise, further enhancing the company's capabilities and competitiveness.

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First Niagara Financial Group Inc. acquired Harleysville National Corp. for $237 million in an all-stock deal.

The acquisition is First Niagara's second in Pennsylvania in four months, and it allows the company to expand its operations into eastern Pennsylvania.

Harleysville operates 83 bank branches across the eastern portion of the state, including the Philadelphia area.

The deal values Harleysville shares at $5.50 per share, a 37.5 percent premium over Harleysville's Friday closing price of $4.

Shares of Harleysville jumped $1.51, or 37.8 percent, to close at $5.51.

First Niagara said the acquisition should boost earnings per share by about 14 percent in 2011.

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The acquisition is expected to close during the first quarter of 2010.

First Niagara had $6.2 billion in deposits as of June 30.

Harleysville has about $4.1 billion in deposits.

The National City branch acquisition, which is expected to close in September, will add $4.2 billion in deposits to First Niagara.

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