Live Oak Bancshares expects pre-tax gain from Apiture acquisition by CSI

Published 19/08/2025, 14:18
Live Oak Bancshares expects pre-tax gain from Apiture acquisition by CSI

Live Oak Bancshares, Inc. (NYSE:LOB), a profitable financial institution with a market capitalization of $1.52 billion according to InvestingPro, announced Tuesday that its wholly owned subsidiary, Live Oak Banking Company, expects to realize a pre-tax gain estimated between $20 million and $25 million following the acquisition of Apiture, Inc. by Computer Services Inc. (CSI). The information is based on a press release statement included in a filing with the Securities and Exchange Commission.

According to the agreement, a wholly owned subsidiary of CSI will merge with and into Apiture. After the transaction closes, Apiture will become a wholly owned subsidiary of CSI. Live Oak Banking Company, currently trading near InvestingPro’s Fair Value estimate and maintaining a P/E ratio of 20.46, holds an investment in Apiture and, as a stockholder, will receive a portion of the merger consideration.

The transaction is subject to customary regulatory approvals and closing conditions. Live Oak Bancshares stated that the anticipated pre-tax gain is subject to closing price adjustments. The company also indicated that it will no longer recognize further pass-through losses from its investment in Apiture once the transaction has settled.

The merger agreement and related details were disclosed under Regulation FD in the SEC filing.

In other recent news, Live Oak Bancshares reported its Q2 2025 financial results, exceeding analyst expectations with earnings per share of $0.51 compared to the forecasted $0.50. The company’s revenue also surpassed projections, reaching $143.7 million against the expected $139.25 million. In a strategic move, Live Oak Bancshares priced an underwritten offering of 4,000,000 depositary shares, each representing a 1/40th ownership interest in a share of 8.375% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock. The depositary shares have a liquidation preference of $25 per share, with dividends payable quarterly starting September 15, 2025, if declared by the board. Additionally, Keefe, Bruyette & Woods (KBW) upgraded Live Oak Bancshares from Market Perform to Outperform, citing several positive catalysts expected to boost the bank’s shares through 2025. Meanwhile, Raymond (NSE:RYMD) James maintained its Market Perform rating, noting concerns about the broader economy’s impact on the bank’s SBA (LON:SBA) loan portfolio, despite strong financial performance. Furthermore, Live Oak Bancshares appointed Jeffrey W. Lunsford to its board of directors, bringing three decades of technology leadership experience to the company.

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