Banco Santander, S.A. is acquiring Webster Financial, the holding company for Webster Bank, in a cash-and-stock transaction valued at $12.3 billion.
Webster stockholders will receive $48.75 in cash and 2.0548 Santander American Depository Shares for each Webster common share.
“This is an exciting combination that brings together complementary strengths and a shared commitment to excellence,” John Ciulla, chairman & CEO of Webster, said. “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. I look forward to joining the Santander team and enhancing our ability to support our clients. As a Connecticut-based bank with deep roots in the region, we also look forward to continuing our commitment to the communities we serve.”
Under the terms of the agreement, Webster will become a wholly-owned subsidiary of Santander. Once the transaction is completed, Christiana Riley will remain Santander’s country head in the United States and the CEO of Santander Holdings USA. Ciulla will be the CEO of Santander Bank NA into which all of Webster’s businesses will be integrated.
“Paramount to Webster’s board and me was partnering with an organization that understands the importance and power of legacy as we do and the value we place on our clients. We found that shared commitment in Santander and are confident this transaction will create an even stronger partner to help our clients achieve their financial goals,” Ciulla said.
Luis Massiani, Webster’s president and chief operating officer, will be COO of both SHUSA and SBNA with responsibility for leading the integration.
“This is an exciting step forward for Santander Group, as it creates a stronger bank for our customers and the communities we serve. 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,” Ana Botín, executive chair of Banco Santander, said.
Ciulla and Massiani will be based in Webster’s existing headquarters in Stamford, Connecticut, which will be a core corporate office for Santander. They, along with two additional current directors of Webster, will join the boards of directors of both SHUSA and SBNA. Tim Ryan will continue to chair the boards of directors of both SHUSA and SBNA.
The transaction is subject to closing conditions and regulatory approvals in the United States and European Union.