Connecticut’s Webster Financial has agreed to acquire New York’s Sterling Bancorp, in all-stock “merger of equals” deal that values the latter at over $5bn.
Transaction details
The deal, which has already secured the nod of the two companies’ boards, will see Sterling merging into Webster.
Go deeper with GlobalData
The combined group will have differentiated businesses in commercial banking, health savings and consumer and digital banking.
Shareholders of Sterling will get a fixed exchange ratio of 0.463 of a Webster share for each share they hold.
The total market value of the transaction, expected to complete in the final quarter of 2021, is around $10.3bn.
Webster shareholders will own around 50.4% of the merged business while Sterling shareholders will own around 49.6%.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe merged group will have $63bn in assets, $52bn in deposits, and $42bn in loans, with over 200 financial centres in the Northeast.
It will retain the Webster name and set up a new corporate headquarters in Stamford.
It will also have a continued multi-campus presence in the greater New York City area as well as Waterbury.
The deal is pending regulatory and shareholders’ approvals.
Webster president and CEO John Ciulla said: “This combination provides exceptional financial benefits and enables us to more aggressively invest in key businesses and activities to enhance value for our customers, our communities, our shareholders and our bankers.”
Leadership
Sterling president and CEO Jack Kopnisky will be the executive chairman of the merged business for two years months post deal completion. He will serve in a consulting role for another 12 months after that.
Ciulla will become the president and CEO of the merged business until two years post closing and then serve as chairman, president and CEO.
The merged entity’s board will have 15 directors, including eight directors from Webster and seven directors from Sterling, including Kopnisky and Ciulla.
The executive management team will have executives from both the firms. This includes Luis Massiani as COO and Glenn MacInnes as CFO.
Kopnisky stated: “Webster and Sterling have much in common: distinguished client service, diversity of revenue, funding sources and assets, and disciplined capital allocation.
“The increased capabilities and scale of our two organisations are attractive propositions for our clients, communities, shareholders and colleagues.”
In another recent separate development in the US, Texas-based Cadence, the parent of Cadence Bank, agreed to merge with Mississippi-based BancorpSouth Bank.
