Independent Bank Corp. in Rockland, Mass., has agreed to buy Enterprise Bancorp in Lowell, Mass.
The $20 billion-asset Independent said in a press release that it will pay $562 million in cash and stock for the $4.7 billion-asset Enterprise. The deal, which is expected to close in the second half of 2025, priced Enterprise at 155% of its tangible book value.
Independent plans to raise about $250 million by issuing subordinated debt prior to closing.
Enterprise “is the perfect merger partner … consistent with all aspects of our outstanding long-term merger track record,” Jeffrey Tengel, Independent’s president and CEO, said in the release. Independent and Enterprise “share a deep commitment to strengthening our local communities by putting people and relationships first.”
Enterprise has 27 branches, $3.8 billion of loans and $4.2 billion of deposits. The companies are assuming roughly 5% deposit runoff as a result of the merger.
The merger is expected to be about 16% accretive to Independent’s 2026 earnings per share, assuming full phase-in of cost savings. It should take less than three years to earn back an estimated 9.8% dilution to Independent’s tangible book value.
Independent expects to incur $61.2 million of merger-related charges. It plans to cut about 30% of Enterprise’s annual noninterest expenses.
George Duncan, Enterprise’s chairman, will serve as an adviser to the Independent board for a year. Steven Larochelle, Enterprise’s CEO will serve as a consultant for one year. Two Enterprise directors will join Independent’s board.
Independent was advised by Keefe, Bruyette & Woods and Simpson Thacher & Bartlett. Enterprise was advised by Piper Sandler and Hunton Andrews Kurth.