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Santander Bank announced that it will be acquiring Stamford-based Webster Bank.
The acquisition is equivalent to approximately 4 percent of Spain-based Santander’s global assets. It makes Santander’s Boston-based U.S. franchise a top-10 retail and commercial bank in the U.S. by assets and a top-five deposit franchise across the Northeast, the company said in its announcement.
Based on Santander’s closing stock price on Monday, the deal is worth approximately $12.3 billion.
“This is an exciting step forward for Santander, as it creates a stronger bank for our customers and the communities we serve,” Banco Santander Executive Chair Ana Botín said in a statement. “Webster is one of the most efficient and profitable banks among its peers, and brings together two highly complementary franchises and will expand the products, technology and capabilities we can deliver with clear revenue opportunities from a stronger, more capable combined franchise.”
According to FDIC data, Santander’s operation in the United States has $97.7 billion in assets, while Webster Bank has more than $83.1 billion in total assets.
Webster has dozens of branches in Connecticut, its home state. Santander has 45 branch locations across the state.
FDIC data shows Santander commands $1.9 billion in deposits in Connecticut, or 1.07 percent of the deposit market. Webster Bank controls thee second-biggest share of in deposits locally: $40.42 billion, or 22.77 percent deposit market share. The bank also runs a large health savings account business.
“This is an exciting combination that brings together complementary strengths and a shared commitment to excellence,” Webster Chairman and CEO John R, Ciulla said in a statement. “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.”
Once the transaction is completed, Christiana Riley will remain Santander’s country head in the U.S. and the CEO of Santander Holdings USA. Ciulla will be the CEO of Santander Bank, N.A. and Luis Massiani, Webster’s current president and CEO, will become. COO of both Santander Holdings USA and Santander Bank, N.A. Massani will be responsible for leading the integration, reporting to both Riley and Ciulla.
Ciulla and Massiani will continue to be based in Webster’s existing headquarters in Stamford, Connecticut, which will become a core corporate office for Santander, the bank said.
