Banco Santander has agreed to buy Webster Financial in Stamford, Conn.
Santander said in a press release that it will pay $12.3 billion in cash and depository shares for the $80 billion-asset Webster. The deal, which is expected to close in the second half of this year, priced Webster at 200% of Webster’s tangible book value.
“This is an exciting combination that brings together complementary strengths and a shared commitment to excellence,” John Ciulla, Webster’s chairman and CEO, said in the release.
“As a larger organization, we will unlock greater scale, broader capabilities and new opportunities for growth—while remaining deeply focused on the people who define our success,” Ciulla added.
The acquisition “creates a stronger bank for our customers and the communities we serve,” Ana Botín, Banco Santander’s executive chair, said in the release. “Webster is one of the most efficient and profitable banks among its peers and bringing together two highly complementary franchises will expand the products, technology and capabilities we can deliver, with clear revenue opportunities from a stronger, more capable combined franchise.”
Ciulla will serve as CEO of Santander Bank. Luis Massiani, Webster’s president and chief operating officer, will be COO of Santander Holdings USA and Santander Bank. Ciulla, Massiani and two other Webster directors will join the boards of Santander Holdings USA and Santander Bank.
J.P. Morgan Securities and Wachtell, Lipton, Rosen & Katz advised Webster. Piper Sandler also advised Webster.