FirstCity Financial Corporation to Be Acquired by Värde Partners for $10/Share

FirstCity Financial Corporation

and Värde Partners, Inc. (“Värde”) announced today that they have entered into a definitive merger agreement under which certain funds managed by Värde will acquire FirstCity. Under the terms of the merger agreement, FirstCity stockholders will receive $10.00 per share in cash for each share of FirstCity stock they own. The transaction is valued at $224.9 million, including debt. The $10.00 per share consideration represents a 20.5% premium to the closing price of FirstCity's shares on December 20, 2012, and a 22.8% premium to the 30-day average closing price of $8.14. The transaction is expected to close in the first half of 2013.