The purchase price translates to 3.7 times EBITDA. Greater Bay Bancorp, a $5.1 billion (in assets) financial services holding company with 10 bank subsidiaries, predicts that the transaction to be approximately 1% accretive in the first year of combined operations and approximately 2% accretive in the second year--after goodwill amortization and excluding one-time nonrecurring transaction-related expenses.

CAPCO has approximately $28 million in commitments and $2.8 million in equity. It provides accounts receivable financing to small businesses located in the Pacific Northwest. CAPCO president Steven Shaughnessey and its CEO Thomas Nesbit will continue to lead CAPCO's operations as part of Greater Bay Bancorp.

Greater Bay Bancorp CEO David L. Kalkbrenner says that as a loan production office, CAPCO will provide an opportunity for expansion of the business his company already generates in the Pacific Northwest through its Venture Banking Group.