Webster Financial in Stamford, Conn., has agreed to buy StoneCastle Insured Sweep from StoneCastle Partners.
The $65 billion-asset Webster said the business, which operates as interLINK, is a deposit management platform that administers more than $9 billion of deposits from FDIC-insured cash sweep programs between banks and broker/dealers and clearing firms.
InterLINK administers about 520,000 retail brokerage accounts on behalf of broker/dealers and clearing platforms.
The deal is expected to close in the first quarter. The price wasn’t disclosed.
“The acquisition complements our strategy to build a bank with diverse funding capabilities and technology-enabled businesses,” John Ciulla, Webster’s president and CEO, said in a press release. “InterLINK is a unique deposit channel that provides a scalable source of liquidity for the company.”
BofA Securities and Wachtell, Lipton, Rosen & Katz advised Webster. Keefe, Bruyette & Woods and Dechert advised StoneCastle.