Webster Financial in Stamford, Conn., has agreed to buy Ametros Financial, a custodian and administrator of medical funds from insurance claim settlements.
The $70 billion-asset Webster said in a press release that its bank will pay $350 million in cash to funds managed by Long Ridge Equity Partners. The deal is expected to close in the first quarter.
Ametros has more than 24,000 members and $804 million in deposits under custody.
“This acquisition closely aligns with our strategic focus on building a diverse and unique funding base,” John Ciulla, Webster’s president and CEO, said in the release.
“Ametros’ market position and value proposition for its clients and partners underpin a robust growth trajectory for this highly complementary business,” Ciulla added. “Ametros builds on Webster’s history of developing non-traditional deposit verticals with a favorable financial profile.”
The acquisition is expected to be more than 2% accretive to Webster’s 2025 earnings. It should take five years for Webster to earn back any dilution to its tangible book value.
Webster was advised by Wachtell, Lipton, Rosen & Katz. Ametros and Long Ridge were advised by Choate, Hall & Stewart.