Sterne Agee Updates Estimates for Green Dot Corporation Following Acquisition of TPG

In a report published Friday, Sterne Agee analyst Thomas C. McCrohan reiterated a Neutral rating and $17.00 price target on

. In the report, Sterne Agee noted, “Todays announced acquisition of TPG was made, in part, to offset margin pressure in the company's core prepaid business. This morning, Green Dot announced the acquisition of Santa Barbara Tax Products Group (TPG) for $320 million in cash and stock, as well as contingent considerations. The company will fund the transaction with $55 million in cash, $150 million in new bank debt, and 6.1 million shares of stock (about 10.5% of the company). The acquisition is expected to close in 60 days.” Green Dot Corporation closed on Thursday at $19.61.